What Reasons Will Life Insurance Not Pay?

Life insurance policies are designed to provide financial protection for your loved ones in the event of your death. However, there are certain circumstances where insurance providers may not pay out.

The most common reason for life insurance not paying out is due to fraud or non-disclosure of information. Insurance providers require honesty when answering health and lifestyle questions, and any high-risk activities should be disclosed. Policies may also be voided if the policyholder takes their own life within the first 12-24 months of the policy or withholds information about their mental health.

It is important to keep your insurance provider up-to-date with any significant life changes, such as getting married, having children, moving house, or changing jobs. Failure to do so could result in being underinsured or having a claim refused. Some policies may also become void if you live or travel in certain geographical locations for a specific amount of time.

If you outlive your term life insurance policy, your insurer will not pay out. It is also important to keep up with monthly payments, as a lapse in the policy due to missed payments will result in the insurer not paying out. Missing important documentation may also result in a claim being refused.

If your claim is rejected, you can make a complaint to the insurance provider and take your case to the Financial Ombudsman Service if necessary.