Can the insurance company deny a claim?

Purchasing life insurance is an act of selflessness for your loved ones that you should hopefully never have to use. 

In the event that it’s ever needed you want to make absolutely certain that the insurance company will never have any reason whatsoever to deny the claim.

There are two primary reasons why an insurance company may deny your insurance claim:

  • The Suicide Clause
    • Intentional self-destruction or death by one’s own hand would be considered suicide. In the first 2 years of the policy being in force, this is guaranteed to be denied. However, after 2 years have passed this clause will no longer be in effect.
  • Lying on your application or intentionally leaving out information
    • The application process might seem daunting with its exhaustive list of questions; however, it is imperative that you answer all the questions truthfully and to the best of your ability. If the insurance carrier finds out that you lied on your application or left out information indicating you might be hiding something, they could deny your claim. 

Another reason an insurance company will not pay a claim is the Slayer Rule.

  • The Slayer Rule
    • The slayer rule prohibits a beneficiary from collecting a life insurance claim against someone they have killed or have had killed by someone else’s hand.

Besides those reasons, if your premiums are paid then the insurance company is contractually obligated to fulfill your claim.

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