Life Insurance Claim Delayed
What should I do if the insurance company keeps delaying my life insurance claim?
You should retain a life insurance lawyer immediately before your delayed claim becomes a denied life insurance claim. We serve all states. Free consultation. No fee unless settlement.
2025 Delayed life insurance claims
- Loyal American delay due to medical records $113,000.00
- Farmers New World 15 month delay resolved $59,000.00
- Shelter Life emergency room visit in medical records $104,000.00
- Federated Life beneficiary designation issue $46,000.00
- Western & Southern one year delay of payment $108,000.00
- Texas Service Life wouldn't pay for over 2 years $115,000.00
- Advantage Capital Partners medical record issue $73,000.00
Insurance companies have long been notorious for delaying life insurance claims, making an already difficult time even more stressful for beneficiaries. When someone loses a loved one, they often rely on the life insurance payout to cover funeral expenses, outstanding debts, and the loss of income. However, insurance companies frequently employ tactics to postpone or even avoid paying out these claims. These delays can last for weeks, months, or even years, causing significant financial hardship and emotional distress to the beneficiaries. Understanding how and why insurance companies delay these claims can help policyholders and beneficiaries take the necessary steps to expedite the process and ensure they receive the funds they are entitled to.
One of the most common tactics insurance companies use to delay life insurance claims is repeatedly requesting the same documents. Beneficiaries often find themselves submitting multiple copies of a death certificate, proof of identity, and other necessary paperwork, only to be told that the documents have been lost or are incomplete. Some of the companies known for employing these tactics include American General, AARP, Banner, MetLife, Lincoln Heritage, and Reliance Standard. The most egregious request that beneficiaries face is for medical records. Insurance companies have the legal right to obtain these records on their own, yet they will ask beneficiaries to provide them instead. This process is often dragged out for months, with the insurance company requesting records from one doctor one month, another doctor the next month, and so on. The reality is that, in most cases, the insurance company already possesses all the medical records they need but deliberately chooses to make the process as cumbersome as possible for beneficiaries in hopes that they will abandon their claims.
The underlying reason for these deliberate delays is simple: insurance companies make money by not paying out claims. The longer they can hold onto a claim, the more money they can earn through investments and interest. This is a calculated strategy designed to wear down beneficiaries, who are often grieving and emotionally drained. Companies such as Midland National, Hartford Life, Jackson Life, Foresters, Lumico, USAA, and Boston Mutual have been accused of using these tactics. Many people, overwhelmed by the bureaucracy and red tape, eventually give up on pursuing their claims. This is precisely what the insurance companies want. By delaying payouts, they increase the chances that policyholders will either give up entirely or accept a lower settlement than what they are owed. It is a ruthless business practice, but one that is all too common in the industry.
Another reason for claim delays is the alleged need for further investigation. Insurance companies such as Symetra, Transamerica, VOYA, AAA, Ameritas, and Globe often cite the need to conduct a thorough review of the claim, which can take an indefinite amount of time. They may argue that they need to verify the cause of death, check for discrepancies in the policy, or investigate potential fraud. While it is true that some claims require additional scrutiny—such as those involving suspected foul play or suicide—most claims are straightforward and should not require months of investigation. However, insurance companies take advantage of this excuse to delay payouts as long as possible. Some will even go as far as hiring private investigators to dig into the deceased's medical history, financial background, and even personal relationships in an attempt to find any reason to deny the claim.
Policy exclusions are another weapon in the insurance company’s arsenal. Many life insurance policies contain clauses that exclude certain causes of death, such as suicide within the first two years of the policy, death resulting from illegal activities, or death due to undisclosed pre-existing medical conditions. Companies like Horace Mann, Columbian Mutual, Integrity, Corebridge, Mass Mutual, Pekin, Prosperity, and Trustmark have been reported to use policy exclusions aggressively to avoid paying claims. When a claim is filed, the insurance company may scrutinize the deceased’s medical history, looking for any minor inconsistency that could be used to justify a denial. Even if a policyholder had a minor health condition that was never treated or was deemed irrelevant at the time of the policy's issuance, the insurance company may use this as grounds to delay or deny the claim. Beneficiaries who are not well-versed in insurance law may struggle to fight these decisions, which is why legal representation is often necessary.
The timeframe for life insurance claim payouts should be relatively short. Most claims should be paid within a week or two of the company receiving the death certificate. However, some beneficiaries find themselves waiting for months or even years. Companies such as Wells Fargo, Anthem, CMFG, Dearborn, First Colony, Humana, Mutual Savings, State Life, and TIAA have been cited for excessive delays. There are cases where people contact legal professionals after experiencing a delay of a month, hoping that the claim will resolve itself if they just wait a little longer. Unfortunately, this is rarely the case. There have been instances where individuals have endured delays of over two years before seeking legal help, only to have their full policy amount recovered within days of obtaining an attorney. The sad truth is that insurance companies will continue to stall and make excuses for as long as they can get away with it.
If your life insurance claim is being delayed, it is crucial to take action immediately. The best course of action is to retain a life insurance attorney who is experienced in handling these types of cases. Legal professionals know the tactics that insurance companies use and understand how to counter them. Companies such as National Western, Assurant, Progressive, Protective, Prudential, Sagicor, Securian, State Farm, The Hartford, and Unum have faced lawsuits over delayed payouts. Attorneys can put pressure on the insurance company, ensuring that your claim is processed quickly and fairly. Many attorneys work on a contingency basis, meaning they do not get paid unless you receive your payout, which makes hiring one a low-risk decision.
In conclusion, insurance companies delay life insurance claims as a deliberate strategy to avoid paying out benefits. They employ tactics such as repeated requests for documents, unnecessary investigations, and the use of policy exclusions to stall the process. These delays can cause immense financial and emotional strain on beneficiaries who are already coping with the loss of a loved one. However, by understanding these tactics and taking proactive steps—such as hiring an attorney, keeping meticulous records, and applying public pressure—beneficiaries can fight back against these unfair practices and ensure they receive the funds they are rightfully owed. The key is to remain persistent and not allow the insurance company to manipulate the situation to their advantage. Life insurance is meant to provide financial security in times of loss, and no grieving family should have to endure unnecessary obstacles to obtain what is rightfully theirs.