Life Insurance payout?

[cromat]

What is the name of your state (only U.S. law)? Vermont
Hello,
My question is, if a person believed they might have a life threatening illness and before going to a doctor for diagnosis took out a substantial life insurance policy, could the company deny the benefactor by claiming the person who died was deceptive about their condition. Keep in mind they had no recorded previous medical problems at all.

Thank You
Ed

 

[Dandy Don]

What is the disease/medical condition and how did the person fill out this aspect on the insurance application, that there were no pre-existing conditions? Do the person's medical records support the contention that the first time they are being treated for this particular illness happens after the date they submitted the insurance policy? Do you have a printed copy of the policy?

You can challenge the insurance company's conclusion--they are only looking for a reason denying the payout.

Consider filing a complaint with your state insurance commissioner (do a GOOGLE to find their website).

DANDY DON IN OKLAHOMA ([email protected])

 

[ShyCat]

Denial of claim based on materially false information is quite possible.

Typical life insurance application lingo: "Within the past ten (10) years have you been advised of, been treated for, had any known indication of or been diagnosed by a medical professional with: " followed by a long list of symptoms, diseases, disorders, etc.

Note the bolded part.

 

[Dandy Don]

It's hard to see how that would apply here if it's true that the individual never had any known indications of the ailment. And "known indications" is so ambiguous that it is very open to interpretation any way the insurance company wants to present their case for denial.

 

[ShyCat]

Well, seems common sense to me that "if a person believed they might have a life threatening illness" (as stated in the original post) that there must have been some "known indication" of that illness. Insurance companies are not dumb.

 

[justalayman]

It's hard to see how that would apply here if it's true that the individual never had any known indications of the ailment. And "known indications" is so ambiguous that it is very open to interpretation any way the insurance company wants to present their case for denial.

if a person believed they might have a life threatening illness and before going to a doctor for diagnosis

Obviously there is some reason for this belief.

 

[ccfaqs]

I am a rep for a reputed insurance company and according to companies rules, ignorance of an illness cannot be cited for relief for getting a compensation. Anyhow, if you get an insurance you are required to fill up a form which questions about your health status.

If you are unsure of your health status, you have to go to a doctor to ensure of the same.

However, if you do declare your illness while getting an insurance, the company, if it accepts your application (which it does in many cases), you have full right to the compensation. However, in these types of cases the company may require stability of your health for pre-stipulated time.

Hope it helps