One of the biggest reasons people are afraid of death is that there’s no certainty (other than the actual death bit). People are not only uncertain of what lies beyond but what could possibly be left behind. Life insurance can at least help people feel certain that when death strikes, their loved ones aren’t left up a creek without a paddle. Unfortunately, people who are uncertain of their situation are often vulnerable to getting screwed over.

Unlike some of the worst life insurance companies, we’re not sharks, even though we may look a bit scary and are sometimes misunderstood. That’s why we’ll be taking a look at some of the worst tactics employed by life insurance companies, as well as what they say about the wider industry. We didn’t get into the life insurance game to make friends. We’re here to shake the whole thing up, making the industry fairer and ensuring you guys are getting the best possible deals.

Claiming non-disclosure

Ironically, claiming on your life insurance policy can feel like prising your money from someone’s cold, dead hands. Non-disclosure is a common tactic used by the worst life insurance companies for paying claims. When it comes to your medical history, you’re likely to be asked more awkward questions than a child in a public changing room. This can be a little overwhelming, so you can be forgiven if a small detail slips your mind.

However, these mistakes can be costly, giving unscrupulous companies a loophole to screw you through.

If a life insurance company has come across a glaring lie by omission, then fair enough. However, it’s another thing entirely when companies exploit a small mistake or look a little too hard for evidence of misrepresentation.

We came across a recent example that shocked even us. Late last year, South African life assurance company Momentum decided to hold on to 2.4m rand, rather than pay out to a chap who failed to disclose he had high blood sugar. Did the chap in question fall into a diabetic coma and die? Nope. There’s nothing sweet about getting shot in a botched carjacking.

The news of this withholding broke to public outcry and the resulting PR disaster brought Momentum to a screeching halt. Despite all this, it’s almost admirable how long Momentum dug their heels in. While in the end, they did begrudgingly paid out to the widow of the man, Nathan Ganas, they did it through their own profits rather than Ganas’ premiums. How unbelievably charitable.

Good old-fashioned discrimination

Over the last few years, we’ve been having more productive public conversations about mental health. As part of this, people who feel as though they’ve experienced discrimination due to their mental health have been given more of a platform. Unfortunately, many mental health issues aren’t fully understood or inappropriately classified, often leading to marginalisation. This means that many providers are unwilling to provide life cover for people living with mental health issues.

This was covered in an article in The Guardian in 2018. The article unearthed some rather unpleasant examples in which people struggling with their mental health were denied cover. One particular example was a survivor of the 7/7 bombings who was treated for post-traumatic stress disorder. There were also instances where people saw their premiums skyrocket after they attended a handful of grief counseling sessions. It’s important to remember that life insurance is a safety net for people who want security for both themselves and their loved ones. Why should people be denied that simply for asking for help?

At DeadHappy, we go against the grain. Rather than excluding suicide from our policies for people with mental health issues, we did it for everyone. This is, however, subject to an annual review. More often than not, we lift this exclusion after a year. This means that we are able to accept nearly all mental health conditions at standard prices, without the need for additional info.

Mis-sold policies

The boldest of moves carried out by the worst life insurance companies. It’s like being sold a Givenchy waterproof jacket when all you wanted was an umbrella. ‘Whole of life’ policies have always been controversial. As the term suggests, they last the whole of your life, with the promise of a big payout at the end.

This, unfortunately, gives life insurance providers considerable leverage. More often than not, ‘whole of life’ insurance policies are subject to regular reviews, meaning that premiums can be raised and benefits can be slashed. Now, they are somewhat at their liberty to do so but often customers speak up to say that they weren’t properly informed.

What does it mean to be properly informed? The person who sold the policy may have mentioned the reviews in passing. It is also likely to be part of the small print of the policy documents. Of course, this will be brought up by companies to cover their arse against allegations of mis-selling. What we’re trying to get at is that the worst life insurance companies do not make the effort to ensure people understand every aspect of the policy.

So what are people supposed to do when faced with massive premium hikes? Either they stop paying, and their investment has been for nothing, or they continue to be exploited. It’s a sad dynamic that most life insurance companies are happy to live with. Not at DeadHappy though, oh no…

At DeadHappy, we’re able to be transparent because we’ve got nothing to hide. People understand exactly what they’re getting themselves into because we keep it simple. Our pay-as-you-go life insurance helps you stay flexible, and we make it as easy as possible for you to change it. Sound good to you? Contact us today and start your first deathwish.