Denied Mortgage Life Insurance Claims – An Overview
It is very common to see people denied a mortgage life insurance claim. The main reason being, the insurance company thinks that the person making a claim does not have a good enough reason.
A mortgage life insurance claim is made by the borrower of a mortgage loan to the lender. The borrower typically makes this claim when they die, and the proceeds from the life insurance policy are used to pay off the remaining balance of the mortgage loan.
With this type of insurance, the lender is the beneficiary of the policy and not the borrower. This is why it is common for lenders to require borrowers take out mortgage life insurance.
With the right help, however, it is possible to collect on a denied mortgage life insurance claim.
What is Mortgage Life Insurance?
Mortgage life insurance is a type of life insurance that pays off your mortgage in the event of your death. It can give your loved ones peace of mind knowing that their home will not be taken away in case something happens to you.
There are many different types of mortgage life insurance, so it is important to compare policies and find the one that is right for you.
Some common types include:
- Term life insurance: This type of policy covers you for a set period of time, typically 10-30 years. If you die during this time, your mortgage will be paid off.
- Whole life insurance: In this policy, your mortgage is covered for your entire life. Your mortgage will be paid off if you die at any age.
- Universal life insurance: This type of policy covers you for your entire life and has a cash value that can be used in case of an emergency.
- Variable life insurance: A variable mortgage life insurance policy covers you for your entire life and offers a death benefit that can fluctuate based on the performance of the stock market.
How To Collect On A Denied Mortgage Life Insurance Claim?
There are a few things that you can do if your mortgage life insurance claim is denied.
- Contact the insurance company and find out why your claim was denied. It is possible that there was just a misunderstanding or that there is something you can do to rectify the situation.
- If you are still denied after contacting the insurance company, you can try to appeal the decision. This will require you to provide more information about your case and why you think that you should receive the life insurance benefits.
- You can also try to negotiate with the insurance company. This is often the best option, as it allows you to reach a compromise that is acceptable to both parties.
- If, however, all avenues fail and you believe you are in the right, you can always go to court or mediate with the insurance company to collect.
No matter what route you decide to take, it is important to remember that you have options if your mortgage life insurance claim is denied.