mbrcatz
|
Well, the policy is only contestable for the first two to three years, depending on where you live. Only a very, very small percentage of people die during the first two to three years. It's much, much more cost effective to only spend the money on the extremely small percentage of claims that are contestable.
And, it keeps EVERYONE'S rates lower.
Frankly, by "due diligence", you mean, "catching the applicant in a lie". And I don't think it's fair for HONEST people to have to pay more, so that people who lie on applications can get "caught out" early on. |
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Centaur
|
It's easy to make the insurance companies the villains, but the fact is that policyholder fraud is rampant. The insurance companies must identify fraud to keep costs down for everyone. They have software programs that "red flag" suspicious billings, and then they investigate. Without such investigations, the rip-offs--already enormous--would grow. |
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bud68
|
What insurance company? When I bought life insurance, all the underwriting, physical exam, etc., was done before a penny was paid. |
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aaron p
|
You might want to talk with a lawyer if there is a better way to handle this. Most life insurance companies do front-end underwriting, but unless there is a reason to believe a statement is not true during that process, they take them at their word. Back-end underwriting is only allowed during the contestability period which her insurance broker should have explained.
Sorry for your loss. |
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hungry man
 |
What was the claim that was denied? How long did you have the policy and what type policy was it? |
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lunatic
 |
It's called maximizing profit.
Don't ya just love capitalism? |
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none
 |
You are so right! They just want your money. They are betting that you will live, and you are betting that you will die. I think all insurance is a scam. |
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Barbie doll lover
 |
Yeah, I would agree. Maybe next time tell them to check you out or even ask can you check them out before giving you give them one thin dime. |
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Bethany M
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What do you mean by "investigating"? |
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Mrs.Lopez~has 2 wants 3
|
What life insurance company did that to you? |
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Jesse Rocks
 |
They go ahead and sign you up because they want money...now.
They vigorously investigate claims to keep from paying...this is how all insurance makes money....they call it, protecting their interest. |
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Durango
|
They only want your money! They loose if they got to pay out so they will make it as difficult as they can. |
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