The loss of a spouse is utterly heartbreaking. While you emotionally suffer this tragedy, the pragmatic side of you might also worry about finances. If you depended on your spouse’s income, this heartache could accompany panic about how you will survive.
Life insurance is supposed to provide security for widows, but insurance companies usually check to see if they can escape payments somehow. They examine medical records to see if they show differences from what the policyholder reported to the company. Sometimes, however, they make incorrect assumptions or fail to see what really happened.
Common reasons why your claim might be denied include:
- Suicide or illegal drug overdose
- Failing to indicate a pre-existing condition
- Dangerous habits like smoking or risk-taking
- Death related to committing a crime
- Policy lapse or expiration
- The policyholder died too soon after opening insurance
The insurance company might keep you waiting while they look for an excuse to avoid paying the full amount. In the meantime, your bills could pile up, and you might not know if you need to seek another form of financial support. Delays and denied claims can put you at a disadvantage, especially if you still have children to raise.
It’s easier for an insurance company to evade payment if you don’t fight back. You have the option to disagree when an insurance provider tells you that they won’t pay after your spouse spent years building this benefit for your sake. After all, these companies don’t know the whole story – and they usually don’t want to hear your side.