Do life insurance companies want to pay claim?

Answer 1

Reputable life insurance companies do want to pay claims. They wish to develop positive consumer images, stay in line with regulatory requirements, and grow their business.

Life insurance companies are able to cap their risks to some degree, unlike certain other kinds of insurers. By this I mean the a life insurance company is on the hook for a fixed benefit equal to the amount of insurance purchased by or on behalf of the insured. This is in contrast, for example, to an auto liability insurer that has a range of dollars that it may pay on a claim up to the maximum amount of coverage purchased.

All of that said, a life insurance company will conduct an investigation as to the cause of death and to make sure that the insured did not misrepresent his state of health when the policy was purchased. This does not mean the it wishes to deny the claim, but instead, to make sure that it is a proper claim and that the policy was issued based upon accurate information.