More and more Americans are trying to protect their family’s financial future by purchasing term life insurance. As a new husband and father, one of the first things I did was purchase term life insurance, just in case an unfortunate event happens. Its not something anyone likes to think about, but it is something that people do prepare for, or at least they think they have.
Insurance companies are finding new ways to not pay on life insurance policies, and the most popular method is by rescinding the life insurance contract. What the Insurance company will do (after the policyholder dies) is find out if anything in the application for life insurance was potentially untrue, and this allows them to attempt to rescind the policy and not pay the beneficiary a penny. Seems too easy doesn’t it? Well it can be avoided.
Here is a great article that outlines the ways that you can avoid having your life insurance policy rescinded.
Please remember the Insurance company is not your friend, they are a business looking to make a profit and if they can find a way not to pay a policyholder $500,000.00 they will do it. Make sure when you fill out your life insurance policy that you have not given the insurance company a way to rescind the policy.