People who are often beneficiaries of claims by policyholders need to know some of the facts about filing claims so they don’t hit a dead end in doing so. First, you must understand the terms and conditions under which the policyholder agreed to enter into an agreement with the insurance company. Too many people have lost money left to them by their deceased or have filed claims with insurance companies to no avail.
The first thing you should do, both as policyholder and beneficiary, is review the terms and conditions of the policy, understanding the fine print with the help of an agent or company representative. It may not be a bed of roses to attend such a meeting, but it will help clear the air and help you file a claim easily.
With that said, there are 2 waiting periods you need to be aware of when dealing with an insurance policy, and this article breaks them down briefly and precisely.
Challengeable grace period in a simplified life policy:
The first of these periods begins once you file claims for a person’s death if you had registered for such a claim as the simplified life policy. The company is given a period of 2 years to investigate the information that the insured gave, in case he took out term life insurance without medical exam coverage. Also at this time, the company is mandated to find out the exact cause of death of the owner, and must challenge the claim once the anomaly is detected. If the person was seen to have committed suicide, the company has the right to deny any claim to the family or beneficiary.
Guaranteed Issue Policy Waiting Period:
Another waiting period is the one mentioned above. This type of policy is usually issued to those clients who do not qualify for the fully underwritten insurance policies that we have today. This can happen for various reasons. However, if someone purchases such coverage and dies within the first 2 years covered by the policy, there will be no benefit to the beneficiaries. However, the premiums paid will be given in full with accrued interest. Of course, this will be done once an investigation into the policyholder’s cause of death is done. This also takes some time.
