The most common types of life insurance claims are contestable and non-contestable claims. The contestable claim is a life insurance policy that has ages less than two years when an insured dies. A non-contestable claim is a policy that cannot be investigated by the insurer because the policy is more than two years old when the insured dies.

When a contestable claim is filed, the insurance company has the contractual right to investigate the validity of the original application for any reason they should not have issued the policy and if a reason is found, the policy will be canceled and the premium payments are refunded. No death benefit will be paid.

Conversely, a non-contestable claim is a claim that has aged beyond the two-year timeframe. Non-contestable does not imply the claim will be paid immediately, however. Specific documentation must first be provided by the beneficiary in order to collect the death benefit.

Some insurers request an obituary notice, death certificate, medical records, autopsy report, even an interview with the beneficiary and more before setting a claim.

The time spent waiting for records can be lengthy and prove difficult when insurance companies are understaffed or have an influx of claims work to be done internally. RSB partners with these teams as a “special forces” group helping the insurance company by providing due diligence work locating and gathering documents for insurance companies.

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