COVID-19 and Life Insurance Company Claims
COVID-19 and Life Insurance Company Claims is an extremely important issue today. At Life Insurance Lawyer Now, we are all-in on whatever it takes to protect people during this health crisis. Whatever happens in the next few months, we are concerned if COVID-19 will allow life insurance companies deny even more claims – even claims that have nothing to do with this novel virus.
Does Life Insurance Cover the Coronavirus (COVID-19)?
Overall, we think that the life insurance companies will continue to pay some claims, and have the financial strength to pay claims. The real question is if the life insurance company will pay your claim – or use COVID-19 as another excuse in their favor.
The COVID-19 crisis will likely allow Life Insurance Companies to step-up their plans on avoiding paying life insurance claims.
If your claim is in the first two years of a life insurance policy, watch out for stepped-up rescission claims by the insurance company. Rescission is a strategy by the Life Insurance Company to avoid paying any policy benefits by claiming that you have no insurance coverage.
The tricky thing that most people don’t understand about a rescission review (also called a “contestible investigation” by some life insurance companies) is this:
- The life insurance company can “blow up” the policy if it says there is anything misrepresented on the application.
- The thing that is “misrepresented” does not have to be the incident that unfortunately caused the loved one’s death.
- The life insurance company says that any misrepresentation is enough to undo and rescind the policy. This is really tough for most people to understand – and it is very unfair.
This position of the life insurance companies results in the ridiculous but successful rescissions such as:
A man unfortunately passes away in a fire at his home, while he is sleeping. The fire is caused by an electrical malfunction. Because the man did not tell the life insurance company on the application that a doctor had told him he had high blood pressure, the life insurance company is successful in making the life insurance policy disappear (rescission). Of course, the high blood pressure had nothing to do with the death by smoke, but the family still did not get paid.
This Rescission Rule Really Favors the Life Insurance Companies.
Because it is so unexpected to most people, it can be a problem. This is another reason having a lawyer on your side, early, is important. We know the rules and we know why the life insurance company is doing the sort of strange things that it is doing. You don’t want to learn the basics on your own case. It is better to rely on us. Even if it seems like a difficult situation, we may be able to help. The Life Insurer has a team of experienced lawyers – you need the same. We are here to fight for you regarding Covid-19 and Life Insurance Company Claims.
We Expect Life Insurance Companies to Use Rescission rules for COVID-19 claims.
The life insurance companies will look for literally anything they can twist into looking like a misrepresentation, so they can avoid paying the life insurance policy, no matter how unrelated the cause of death and the misrepresentation may be. Especially now, if the life insurance company begins to “over-investigate” your claim, asking for broad medical authorizations, you should beware, as well as have some expert lawyers on your side to get your claim paid.
Nerdwallet.com has this to say about Life Insurance Benefit claims relating to COVID-19:
We have done this a lot. We take the time to know you and your case. We start working for you NOW. We communicate with you, respond to your calls, are available to you. We focus on how to win your case. If you have a problem getting your life insurance claim paid, rescission, beneficiary disputes, or your policy has been cancelled or has other issues on it, you need to contact Life Insurance Lawyer NOW.com or life insurance justice.com. Use the form on our site, or email us, or call (888) 997-4070 or (818) 937-0937 to speak directly to an experienced life insurance lawyer. We are the best life insurance lawyers you can find, and we are real lawyers, not a lawyer referral service or “middleman”, we are here for you NOW.