Please do not make a mistake of applying for Life insurance if you believe you cannot disclose a part of your medical history or life style history. Its best to either consult with a lawyer re your particular situation before you apply or/ and consider other ways of securing financial future for your loved ones.
Insurers will investigate your beneficiary's claim AFTER your passing for possible violations of policy terms. The fact that you were paying premiums for your Life Insurance does not mean that your beneficiaries will receive the amounts you have insured yourself for.
Number one reason why Life Insurance claims are denied is because insured failed to disclose information during medical interview or/ and on a medical questionnaire form. Many people mistakenly believe that there is no way insurers can verify whether their answers are correct. Nothing can be further from the truth - insurers will only ask you for information that they CAN in fact verify.
For instance you have decided not to disclose that at some point, say 10 years ago, you were dependent on drugs or alcohol. You may be thinking that no one will ever find out about this, and even if they will, it will be irrelevant to your cause of death. Unfortunately what you may be forgetting that at some point you may have mentioned something to your family doctor and he or she made a record in your medical file. If your death will happen to be related to your alcohol consumption, your beneficiary will likely face denial of your Life Insurance payout.
Second reason for denial of Life Insurance claims are so called "pre-existing conditions".
This is what you should do when applying for Life Insurance:
1. Ask for a copy of the completed medical questionnaire (the one that contains your answers) and review it before your application gets approved. Even if you will simply forget to mention some ailment to your insurer, this omission may still form basis for denial of your Life Insurance Claim. Therefore it is always a good idea to review your answers prior to the approval.
2. If you wish to correct your answers, please do so ASAP;
3. If you don't know whether you should be correcting your answers, contact a lawyer that deals with life insurance claims. Money that you will spend on legal consultation will take you a very long way;
4. If you don't have a very good command of English language, ask for a questionnaire in your mother tongue. If your interview is done over the phone, please ask for an interviewer who can speak well in your language;
5. Consider purchasing Life Insurance when you are still young and relatively healthy so things like "pre existing conditions" will not become an issue. By the same token it may be a good idea to purchase Life Insurance for your kids. Contact an insurance broker of your choice to discuss your options;
6. If you are a beneficiary dealing with a death of a loved one and his or her Life Insurance Claim is being denied, you best bet is to get in touch with experienced counsel ASAP.
Please do not hesitate to contact us at email@example.com or by telephone 416.499.1676 for further information.