One of the biggest concerns life insurance buyers have is whether or not their insurance company will payout the full death benefit if they were to suddenly pass away. The reason you spend your hard earned money each month on life insurance premiums is for it to be there in the event of an unexpected tragedy, you don’t want your family to be left penniless or destitute because your life insurance policy didn’t pay out the claim. Best life insurance.
Rest Assured with Life Insurance Claims
Well the good news is life insurance policies always payout if you were honest on your application! A life insurance policy is a contract between you and the insurance company where each party has its own duties. You, the policy holder agree to premiums every month or year in exchange that if you pass away as defined by the terms in the policy your beneficiary will receive the death benefit. Life insurance is not subjective like other insurance coverage’s. For example, it is not uncommon for someone to disagree with an auto insurance company on the actual cash value of a car that was totaled in an accident or to have problems with a health insurance company denying a claim for any number of reasons and you have to continue to fight to eventually be covered, we’ve all heard those horror stories. Fortunately, you don’t have to worry about that with life insurance due to the nature of the policy.
Third Party Reviews
Market survey companies like J.D. Power rate insurance companies for auto and home on their satisfaction with their claims experience but not life insurance. Why? All life insurance companies have to pay out the claim if someone passes away. In addition to J.D. Power, even Consumer Reports does not recommend one particular life insurance company over another because they all pay out valid claims.
Life Insurance Companies Can’t Negotiate
If the insured passes away and the beneficiary produces a death certificate then the life insurance company has to payout the full death benefit. There is isn’t any negotiation or gray area as with other types of insurance. The only instances when beneficiaries encounter problems with a life insurance company is when the insured was not honest on their application and the insured passes away during the first two years from the inception of the policy. Most life insurance policies have a two year contestable period, meaning if you pass away in the first two years of the policy, they have the right to investigate if you lied or were not forth coming on your application. The insurance company can then deny the claim. (Also, there isn’t a time limit if you procure your insurance policy by fraud.) So for example, if you fail to disclose that you had a heart attack on your application, and you pass away in the first two years from the effective date of the policy, the life insurance company has the right to investigate and deny the claim. However, as long as you answer all of the questions on the application honestly you will have nothing to worry about and they will payout the claim in full. To even go a step further, if for some reason there was any issue with your beneficiary receiving the payout with a valid claim and it went to court, due to the nature of the contract, the courts almost always side with the beneficiary not the insurance company.
Choose a Company with Strong A.M. Best Rating
As a general rule of thumb, you want to choose a company that has at least an “A” (Excellent) financial strength rating with A.M. Best (the benchmark in insurance rating companies). This will give you the peace of mind knowing the company is financially strong and will payout the claim in full. Below is a list of some of the most popular life insurance companies in America that payout claims:
As long as the insured is honest on their life insurance application, they will have the peace of mind knowing their policy will payout if a claim is filed. Also, when shopping for life insurance be sure the company you choose has at least an “A” rating or better by A.M. Best. Since all companies will pay out a valid claim, price is important when choosing which company to go with in 2019. Compare rates by using the quoter below and let companies compete for your business.