Our life insurance lawyers share some cases involving life insurance denials due to automatic withdrawal problems as well as some with other problems which caused a denied life insurance claim.
Monarch Life Insurance Claim Denied. Client changed their bank account or payment method, but did not update their information with the life insurance company. The automatic withdrawal failed, and the policyholder did not receive a notice or pay manually before the grace period expired, and the policy lapsed.
Gerber Life Insurance Claim Denied. A man had a permanent life insurance policy with a cash value component, and used the cash value to pay the premiums. However, the cash value ran out after a while, and the policyholder did not resume paying the premiums manually. The policy lapsed due to non-payment.
Zander Life Insurance Claim Denied. Client had a term life insurance policy that expired at the end of the term. The policyholder did not renew or convert the policy, and the bank stopped taking payments automatically. The policyholder died after the term ended, and there was no coverage in force.
Ameriprise Life Insurance Claim Denied. A woman had a group life insurance policy through their employer, and paid their premiums through payroll deductions. The policyholder left their job or retired, and did not continue paying their premiums directly to the life insurance company or port their coverage to an individual policy. The policy lapsed when they were no longer employed.
Freedom Life Insurance Claim Denied. Client had a life insurance policy with a rider that allowed them to skip premium payments under certain conditions, such as disability or unemployment. However, the policyholder did not meet the eligibility criteria for the rider, or did not provide sufficient proof of their situation to the life insurance company. The policy lapsed due to non-payment.
Costco Life Insurance Claim Denied. Policyholder had a life insurance policy with an accidental death benefit rider that paid an additional amount if they died in an accident. However, the policyholder died of natural causes or suicide, and the life insurance company denied the claim for the accidental death benefit. The bank stopped taking payments for the rider after the claim was denied.
Inter-American Life Insurance Claim Denied. Client had a life insurance policy with a premium waiver rider that waived their premiums if they became disabled before a certain age. However, the policyholder became disabled after that age limit, or did not provide adequate evidence of their disability to the life insurance company. The policy lapsed due to non-payment.
Confederation Life Insurance Claim Denied. Woman had a life insurance policy with a loan provision that allowed them to borrow money from their cash value. However, the policyholder did not repay the loan or pay interest on it, and the loan balance exceeded the cash value of the policy. The policy lapsed due to non-payment.
First Capital Life Insurance Claim Denied. Client had a life insurance policy with a dividend option that allowed them to use their dividends to pay their premiums. However, the dividends were not enough to cover the full amount of the premiums, and the policyholder did not pay the difference manually. The policy lapsed due to non-payment.
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