life insurance ?
Let’s say I have a life insurance policy open and all the medical questions are correct, but the owner ( person it is for ) made an error when saying they didn’t have another life insurance policy through there employer when initially signing up but they did. Would that be grounds for a claim to be denied? Even though all medical and other information is correct.
- curtisports2Lv 72 months agoFavorite Answer
Health insurance when there is dual coverage gets into the question of which insurance pays for what, and it's not withholding information about the other coverage on an application that's the issue, because there is no application. You are covered just by being an employee. The withholding of information is a problem when filing claims. You can't collect from both insurers for the same claim.
When it comes to life insurance, this means nothing. It's no company's business what other life insurance you have. As long as you are truthful on your application as far as medical information. Another life insurance company has no business asking the question 'what other life insurance do you have?' and would face a serious challenge in court if they refused to pay on a death claim with 'they never told us they had other life insurance' as the reason. I have private life insurance and I have coverage through my former employer (as a retiree) and one is not the other's business and vice-versa.
- Casey YLv 72 months ago
I sincerely doubt the claim would be denied in this instance...employer sponsored plans wont have very high limits.
Insurable interest needs to be determined when the policy is purchased. As such, if a person with a million in assets at at 60 wants a $100 million policy...yeah, thats a concern. Considered we're only talking about an employer sponsored policy, not a big deal from a death benefit perspective, so I wouldnt worry about this at all.
- RichardLv 52 months ago
That should be irrelevant. One may have as much life insurance as they wish and can afford.
- martinLv 72 months ago
It certainly would be shabby for an insurance company to deny payment of the insurance proceeds on that ground. People often don't think about their group insurance at work in the same light as a privately purchased policy.