Mark and Julie Branson were living a peaceful life when Julie was diagnosed with a very rare brain tumor. The BC Cancer Agency had not treated this illness before, and Julie’s body finally gave in to the disease. Mark was severely devastated. He had two sets of twins to take care of, and he was away from work for three months. The bills piled up, and he struggled to find a way to provide for his family. To make things worse, Mark found out that Julie’s life insurance policy was denied.
According to Global News, the Bransons missed a monthly payment while they were busy moving homes. After five months, when Julie found out about the brain tumor, she called the insurance company to discuss her policy. She was told that it was considered invalid. The couple never received the notice that the company had sent them.
Unfortunately, this is not the first time that a policy has been denied by an insurance company. Your insurance company can consider your policy void for many reasons. It’s not a positive topic to talk about, but it is crucial to know what can void your policy.
Keep an eye out for these things:
Replacing the policy that you currently have
Once you decide to replace your current policy, the incontestability that you previously had will again start from scratch. This means that the insurance company can void your coverage due to any misstatement. If you want to make a switch, consider this first.
Providing inaccurate details
Inaccurate details are a huge issue. For example, if you deny that you have asthma when you do, you risk the validity of your insurance policy. Life insurance policies have an incontestability period that usually lasts for two years. For two years, your insurance company can do a thorough check and dispute the validity of your policy.
Alcohol and substance abuse
There has been a case where a widow applied for insurance after her husband died. However, it was dismissed because of his substance abuse. The widow answered questions about her husband’s health truthfully, telling the company that he suffered from illnesses of vital organs. The insurance company requested no other information. The insurance company denied her claim for payment. An exclusion stated that the company had no liability except to refund premiums where the insured person’s death was directly or indirectly caused by illness, or if it was caused by drug or alcohol use and/or abuse.
Other exclusions that can void your life insurance coverage
Participation in dangerous activities, like skydiving, is an exclusion that could possibly void your insurance claim. Accidental death due to war or death that happens while one is in active military service is also an exclusion.
Insurance policies also have provisions for suicide cases. If the policy is less than two years old and the death was by suicide, the claim will be denied.
Your policy will also be void if you die in a high-risk region or a restricted country. It is important to consult your insurance provider before you travel to places like these.
Read more about life insurance policies at CompareMyRates.ca to find out the best company to work with. But always remember: make sure to read the fine print!