Here are tips to make sure these problems don’t happen to you.
Temporary coverage during underwriting
Ask for temporary coverage during underwriting so you are protected before the policy kicks in. You may be required to begin paying premiums. The payments are refunded if the policy is not finalized.
Keep notes of all conversations with insurance representatives, no matter how minor, including names and dates. Ask your agent for a copy of statements you made during the application interview. These documents can be useful in contesting a denial.
Ask questions any time you don’t understand something and always answer honestly. Life insurance companies can use the inaccurate or incomplete information to refuse a claim. Even failing to disclose a minor medical condition unrelated to the cause of death can jeopardize your benefits.
List a secondary address
List a secondary address on your policy. If you move or change banks and forget to pay your premium, you have a better chance of receiving the reminders to pay. Most insurance companies cancel policies after 30 to 60 days of missed payments.
Look at guides before buying
Before you buy a policy, check out helpful guides from the American Council of Life Insurers and the National Association of Insurance Commissioners.
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