Denied Life Insurance Claims

If your life insurance claim was denied, you are not alone. Every year, thousands of beneficiaries face unexpected denials from insurance companies they trusted to pay rightful claims. At Lassen Law Firm, we focus exclusively on helping beneficiaries fight denied and delayed life insurance claims nationwide. Christian Lassen, Esq., a life insurance attorney with 25 years of firsthand experience, personally handles every case. If your claim was denied for any reason, we can help you challenge it and pursue the benefits you are owed.

If a life insurance claim is denied, the beneficiary has the right to appeal, demand a written explanation, and, if necessary, file a lawsuit for breach of contract or bad faith. Insurers must prove a valid reason for denying payment under the policy terms.

Why Life Insurance Claims Get Denied

Insurance companies often deny claims to protect their bottom line. While some denials are based on legitimate exclusions or misrepresentations, many are issued in bad faith or based on questionable interpretations of the policy. Denials may be based on alleged misstatements on the original application, claimed policy lapses, alleged exclusions like suicide or dangerous activities, or disputes over beneficiary designations. Some insurers also wrongfully deny claims during the contestability period by aggressively searching for irrelevant misrepresentations.

A denial is not the final word. Beneficiaries have legal rights and options to challenge improper or unfair denials.

How We Help With Denied Life Insurance Claims

At Lassen Law Firm, we aggressively fight denied life insurance claims. We demand detailed written explanations from insurers, identify weaknesses in their denial justifications, and prepare to litigate where necessary. Our firm challenges wrongful denials by gathering evidence, applying pressure through formal demands, and filing lawsuits for breach of contract and bad faith. Insurers know they are much less likely to get away with unjustified denials when an experienced attorney becomes involved.

For example, we recently helped a client overturn a denied $400,000 claim where the insurer alleged misrepresentation of high blood pressure. After uncovering flaws in their investigation, we secured full payment within two months.

Common Reasons Life Insurance Claims Are Denied

• Alleged misrepresentation on the insurance application

• Non-payment of premiums and claimed policy lapse

• Death occurring during an excluded activity (e.g., skydiving, illegal activities)

• Suicide exclusions invoked within the contestability period

• Disputes over beneficiary designation or changes

• Allegations of fraud surrounding the policy purchase

• Contestability investigations citing unrelated health conditions

• Alcohol or drug exclusions improperly applied

• Employer error in work-sponsored policies (ERISA issues)

• Death occurring under suspicious circumstances

What to Do After a Denied Life Insurance Claim

If your life insurance claim was denied, take these steps immediately:

1. Request a full, detailed denial letter from the insurance company.

2. Gather all policy documents, correspondence, and application materials.

3. Avoid submitting appeals without legal advice — many appeal processes are traps.

4. Contact an experienced life insurance attorney immediately.

5. Act quickly to preserve your rights and deadlines to contest the denial.

The sooner you involve legal counsel, the stronger your chances of overturning the denial.

Frequently Asked Questions About Denied Life Insurance Claims

What are common reasons a life insurance claim is denied?

Common reasons include alleged misrepresentation on the application, policy lapse for non-payment, death during excluded activities, suicide within the contestability period, and disputes over beneficiaries.

Can I appeal a denied life insurance claim?

Yes. Beneficiaries have the right to appeal a denial, request all evidence the insurer used to deny the claim, and challenge the decision with legal support.

How long do I have to contest a denied claim?

Each state sets different deadlines, but typically you must take legal action within 1 to 5 years depending on the jurisdiction and the policy terms.

What if the denial was based on alleged misrepresentation?

Insurers must prove that the misstatement was material — meaning it impacted their underwriting decision. Minor or unrelated errors are often not valid reasons to deny a claim.

Does the contestability period matter for denied claims?

Yes. If death occurs within the first two years of the policy, insurers can contest claims based on misrepresentations, but they still must act fairly and reasonably.

Can a suicide exclusion cause denial?

Yes, if death occurred within the policy’s suicide exclusion period (typically two years). After that, suicide exclusions generally no longer apply.

What happens if there is a beneficiary dispute?

When multiple parties claim rights to the proceeds, insurers may delay payment or file an interpleader lawsuit, asking the court to decide who receives the money.

Can life insurance claims be denied because of alcohol or drug use?

Yes. Many policies contain exclusions for deaths resulting from intoxication, but insurers must prove the exclusion clearly applies under policy terms.

What if the insurer says premiums were missed?

You can challenge allegations of lapse, especially if the insurer failed to provide proper notice of non-payment or mishandled billing.

Can I sue a life insurance company for wrongful denial?

Yes. If the denial was improper or made in bad faith, you can sue for breach of contract and, in some cases, seek additional bad faith damages.

Does ERISA apply to denied group life insurance claims?

Yes. If the policy was provided through employment, ERISA laws govern appeals and lawsuits, often requiring exhaustion of administrative remedies first.

How long does it take to resolve a denied claim?

Many claims resolve within 30 to 90 days after legal action begins, but some complex cases may take longer depending on the insurer's cooperation.

Do I have to exhaust the insurer’s appeal process before suing?

For private policies, not always. For ERISA-governed policies through work, yes — you usually must exhaust administrative appeals first.

Can insurers deny claims after deaths overseas?

Yes, but they must have clear proof that exclusions apply. International death cases often involve extra verification but must still be handled fairly.

What happens if the policyholder died while committing a felony?

Most policies exclude deaths occurring during felonies. However, insurers must clearly prove the circumstances before denying the claim.

Are accidental death policies easier to deny?

Often, yes. Insurers may dispute whether the death truly qualifies as an accident and may delay or deny payment based on technical definitions.

Can errors on the original application void the policy?

Only material misrepresentations that affected underwriting risk — not minor mistakes — justify claim denial under most state laws.

Is it better to negotiate with the insurer myself or get a lawyer?

Hiring a lawyer greatly improves your chances of success. Insurers are less likely to wrongfully deny or lowball when legal pressure is applied.

How can I get started challenging a denied claim?

Contact an experienced life insurance attorney to review your denial letter, assess the policy terms, and develop a strategy to overturn the denial quickly.