There are instances where a life insurance coverage may be worthless because of felony exclusion, even though this is uncommon. Knowing what to do in these circumstances and if it will have an impact on any claims you have made is crucial.
Your life insurance policy can be invalidated if you have a felony conviction. This implies that if you pass away, the life insurance company will attempt to avoid paying out a death benefit.
What is a Felony Exclusion?
Felony exclusions are usually listed in life insurance policy fine prints. The felony exclusion permits a life insurance company to refuse the payment of death benefits if the insured person dies while they are committing a crime, similar to most other exclusions.
What Kind of Felonies Can Render Life Insurance Coverage Void?
Life insurance plans generally include certain exclusions. The suicide exception is one of these exclusions that is well-known, although there are other exceptions as well. One of the exclusions that a lot of people are not aware of is felony. Regardless of how uncommon the felony exclusion may be, it is crucial for beneficiaries and policy holders alike to be aware of it and how it can affect them.
Your life insurance coverage may be invalidated if you are convicted of certain felonies. Some known felony exclusions that most people know of include:
- Manslaughter
- Murder
- Burglary
- Arson
- Kidnapping
- Robbery
- Drug trafficking
If the perpetrator commits the same offense repeatedly, even lesser crimes may escalate to felonies. However, certain seemingly innocent actions may also get classified as felonies. For instance, it's considered illegal to use an unprotected WiFi connection without authorization. Or in certain places you are committing a felony if you share passwords for streaming services.
We can see that some felonies are rather ridiculous. However, it's crucial to realize that life insurance companies may reject a claim if the insured individual dies while participating in a felony, regardless of how absurd the violation may be. Insurers can also deny a claim if they believe the insured individual was involved in a felony. However, there is a possibility that the insurer's belief is wrong and that the claimed crimes the insured individual was allegedly doing at the time of their death were not felonies.
How to Appeal a Denied Claim Due to the Felony Exclusion?
If the insured individual passed away while being involved in a felony, the life insurance company may reject the beneficiary's claim. The beneficiaries must always look into the insured person's death's circumstances if a life insurance company denies a claim due to the felony exclusion. It is essential to determine if the insured person's conduct satisfied all of the prerequisites for the claimed crime, including criminal intent, because laws that define and identify felonies are established while keeping particular requirements in mind.
Determining whether the claimed conduct of the insured person is really considered a felony requires a thorough investigation. For this reason, I t is crucial that the insured and beneficiaries are aware of the felony exemption.
If your policy was canceled due to a criminal conviction, a life insurance lawyer can help you win your case. They can explain your options and rights to you.