3 Tips When Applying for Life Insurance

The death of a loved one is one of the most difficult experiences that a person will endure.  Very often, we make arrangements to provide for our families in the case that we were no longer with them, but some insurance companies find ways to maximize their bottom line by looking for any excuse to delay or deny a claim.  These sorts of complications can be avoided when a policyholder does everything properly from the very beginning.  Here are three tips to ensuring that your family will receive its claim should the worst occur.

Be Honest on Your Application

One of the easiest ways for an insurance company to deny a claim is by showing that a policyholder was dishonest on the initial application.  One must be forthcoming and completely honest on the application.  If an insurance company can show that you misrepresented yourself or your health in any way, “it is worth it” to deny your claim.  They count on beneficiaries not knowing the law, or being unable to find an experienced life insurance lawyer to represent them.

Pay Attention to Details

A particularly unscrupulous insurer may even attempt to deny a claim due to an unfilled space on the application.  Read it.  Reread it.  Have someone that you trust read it.  Be sure that everything has been filled out properly and completely.

Research Your Insurance Company

Some companies are notorious for denying claims without cause.  Find out about your insurance company’s history with paying out claims, and consider other companies if you do not like what you see.  In the last 30 years, a number of companies have adopted a policy of denying as many claims as possible.  Even if it keeps them from not having to pay claims to only a few beneficiaries, it is still worth it to their bottom line.