Life insurance is meant to financially protect your loved ones after you’re no longer around, but there are some parts of the process that make it more difficult for family members to get the coverage they need. One factor that can play a role in whether or not holders can get coverage after losing a loved one is the contestability period. Understanding how the life insurance contestability period affects your insurance can be life-saving.
Read on to learn what a contestability period is and how it can affect your life insurance claims.
The life insurance contestability period is the time frame within which an insurance company can question or review the details of your policy that you provided, such as your health conditions and lifestyle. The period begins the day after your policy becomes effective. The contestability period is meant to protect insurers from wrongdoing by policyholders.
This window of opportunity allows the insurer to determine if any information provided on the application was fabricated or falsified. If the owner dies within the first two years of getting the policy, the insurer has the right to delay payment and investigate the beneficiary's claim.
The life insurance contestability period exists for different reasons, including:
In Texas, insurance companies have a 2-year contestability period that starts the day after the life insurance policy is implemented. During this 2-year window, the insurer can investigate a life insurance claim by reviewing the application and medical history to confirm that the material wasn't misinterpreted.
When an insurance company challenges your claim, it means they are questioning its accuracy. If your claim gets challenged, here's what might happen next:
If you’re facing unfair delays or your claim has been denied after complying with the insurance company’s terms, you may be a victim of bad faith. If this applies to you, you can:
Securing an insurance claim can be difficult, especially if the insurer acts in bad faith. If you believe your insurance company is deliberately delaying or refusing to pay benefits, you may need to get a McAllen bad-faith insurance lawyer.
With the help of an insurance lawyer, you can confidently fight for what you deserve. If you're in Texas, contact our team of McAllen insurance attorneys at Millin & Millin. We offer free consultations to help you understand your legal options.
Gulf Coast living provides many exciting recreational activities that the land-locked residents of most other states do not get to experience. But these opportunities come with a risk; warm-water hurricanes.
Homeowners know they must prepare for these events, and that includes knowing how to purchase insurance that will help you rebuild in case your part of the state faces the might of a strong storm.
A storm can cause structural damage in a number of ways.
What first comes to mind is flooding, a catastrophe that is not covered in your typical homeowner’s insurance. Instead, an additional insurance rider must be purchased — flood insurance. If your homeowner’s insurance agency doesn’t participate in this federally-regulated insurance market, you can reach out to the National Flood Insurance Program directly to find a local agent and policy for you.
Another form of storm damage that must be considered is wind and hail. Again, these are catastrophes that are not usually covered in a typical homeowner’s policy! Homeowners must be aware of what is covered in their home insurance policy, and what is excluded. Protection against wind and hail damage is usually an additional expense item that must be added to a plan.
If your insurance does not offer this option, you may have to buy an additional insurance plan for your house from the Texas Windstorm Insurance Association.
If you cannot find the insurance protection you need for your home, look toward the Texas Fair Access to Insurance Requirements Plan, also known as the Texas FAIR Plan. They can help you purchase basic insurance for your home after you’ve been denied coverage by other insurance companies.
How to Make Your Home Insurance Work for You
Now that your home is covered, you should prepare for the worst-case scenario by starting the documentation you’ll need in case any sort of home damage does occur.
Create a list of the property you own, and then update the list regularly. Try to include information about when expensive items were bought, their price, and their serial numbers.
Most household items can be included in your list of property damaged from a storm, including spoiled food, so having this list will help you substantiate your claim in the future. Keep this list in a fire and water-proof container, and also keep any photographic evidence of your home’s valuables secure for future use.
Finally, be sure to stay on schedule with paying your insurance premiums. Do not allow insurance companies the opportunity to deny your damage reimbursement because of this basic requirement!
While we hope that our region will be able to avoid any major storms this hurricane season, we also want to ensure that the people of the Rio Grande Valley are fully prepared. Should your home suffer severe damage caused by a storm and you cannot secure the coverage to you, do NOT hesitate to contact the experienced insurance claim attorneys of Millin & Millin.
Get on the path of recovery by calling the legal experts of Millin & Millin today at (956) 631-5600.
