With the current health crisis, regardless whether you buy into it or not, contracting Covid-19 will raise questions. Death benefit denial is probably among the top Qs. So, since it is a pandemic, a natural disaster and so on. Question is, is this an instance the policy provider can use as a loophole to get out of paying out your policy? Well, simply said, no, not really. Let us explain.
Grounds for Death Benefit Denial
In all cases death benefit denial occurs when fraud is suspected. This is the number one thing to remember when having doubts. What’s life insurance fraud? Well, life insurance fraud is when you intentionally conceal facts about your health. This means that unless you were down with Covid-19 and your doctor told you that you have a week to live before you signed your policy app, you are out of this obligation. Covid is a sickness like any other. And getting sick is not an exclusion for the policy provider.
A fraud only occurs when you are fully aware of a certain terminal medical condition and you leave this disclosure out of your app approval processes. Most of your medical conditions are in your record. There may be a few even your doctor is not aware of. But, if these are existent and you were not made aware of them, then you are not liable for these. Fraud can only occur, if you intentionally conceal a medical condition you are well aware of. If you signed your policy say 2-3 years ago, there is no way you could’ve known about Covid. Hence, no fraud. Simple as that.
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