Thursday, June 1, 2017

Lance Wallach Life Insurance: Premium Finance

Lance Wallach Life Insurance: Premium Finance: Premium Finance Traditional premium finance has long been used by corporations and business owners to assist with cash flow in the p...

Tuesday, January 28, 2014

Why Your Life Insurance Claim Is Denied

Article 3 of 6 in Life Insurance Claims, Attorneys, and Lawsuits

If your life insurance claim is denied, you need to find out why and decide what action is available to you. A life insurance claim denial can be difficult, but if handled appropriately you may be able to get the benefits. 
TIP: If your life insurance claim is denied, you should contact an experienced insurance attorney as soon as possible. An attorney can research the claim denial and assist you collecting any benefits wrongfully denied.
Life Insurance Claims Denied for False Information 
The most common reason a life insurance claim is denied is an alleged material misstatement made by the insured on the application. A material misstatement is one that is stated on the application that if not stated would have clearly led to a refusal by the insurer to issue the policy. Any statement, or omission, that hides the truth about a major health problem which could have influenced the insurance underwriting, the decision to offer a policy, or the cost of insurance is considered a material misstatement or omission. When life insurance claims are denied for material misstatements, the company is rejecting coverage because it was misled at the time insurance was purchased.
TIP: Denying coverage for a material misstatement can happen after the life insurance contestability period has expired. 
It is not uncommon for insurance companies to look for material misstatements or omissions that will provide them with a reason to deny a life insurance claim. Make sure you are honest on your life insurance application! It is also a good idea to record or get in writing any statements made to you by the agent. Agents may breeze over information or cut corners to advance a sale, and if you filled out an application following an agent's instructions and your life insurance claim was denied accordingly, you need to challenge the company.


  1. The IRS may impose penalties for failure to file Form 8938 if you lack reasonable cause or willfully neglected to file. In addition, if you underpay your tax as a result of a transaction involving an undisclosed foreign financial asset, the penalty for such failure may be 40 percent of the underpayment (instead of the normal 20 percent). In addition, the statute of limitations for assessing tax may be extended if you fail to file the form.

    It is important to note that Form 8938 is in addition to the annual Foreign Bank Account Form or "FBAR," which has different filing requirements. The FBAR, generally is required if you have ownership or signature authority over one or more fore

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