Was Your Life Insurance Claim Denied Because of a “Felony”? Here's What That Really Means
Many people assume that life insurance benefits are guaranteed once the policyholder passes away. Unfortunately, that’s far from the truth. Life insurance companies deny valid claims far more often than most people realize—sometimes based on interpretations of policy exclusions that are stretched beyond all reason. One of the most misused of these exclusions is the so-called felony exclusion, which allows insurers to deny a payout if the policyholder died while committing a felony. But what counts as a felony? You might be surprised by the answer—and how frequently this exclusion is abused.
In our experience as attorneys who focus exclusively on life insurance claim denials, we’ve seen life insurers go to extreme lengths to avoid paying what they owe. Some of the excuses they use feel more like fiction than fact. Yet every unjustified denial is part of a larger pattern: a profit-driven strategy designed to discourage beneficiaries from challenging the decision.
Let’s take a look at one real case where an insurance company tried—and failed—to use the felony exclusion to deny a grieving widow her rightful benefits.
The Reality Behind Life Insurance Denials
Behind every life insurance policy is a team of lawyers—some who draft policies, and others who focus solely on defending denials. These companies have entire departments whose job is to review claims and find any possible loophole to avoid a payout. The more claims they deny, the better their year-end profits look. And exclusions, especially vague ones like the felony exclusion, give them broad cover to do just that.
The felony exclusion is a clause found in most life insurance policies that allows insurers to withhold death benefits if the policyholder died while committing a felony. On paper, it sounds reasonable. In practice, it’s often twisted to deny claims that have nothing to do with criminal behavior at all.
Brian’s Story: A Baseball Game, a Punch, and a Shocking Denial
Brian was a shipyard welder and longtime Dodgers fan who held a strong life insurance policy through his union job. He named his wife, Sue, as his sole beneficiary, and neither of them ever imagined that collecting on the policy would be a challenge.
One summer evening, Brian and Sue attended a high-stakes Dodgers game. Emotions ran high as the team suffered a heartbreaking loss on a controversial call. Tensions flared in the stadium, and outside the venue, a minor scuffle erupted when an intoxicated fan shoved another into Brian. Brian, caught off guard, was punched at and instinctively defended himself. In doing so, he struck back and unintentionally caused the other man to hit the ground and suffer a mild concussion.
The situation escalated quickly. The injured man's friends began beating Brian severely, and within minutes, he was killed by a fatal head injury. Stadium police responded promptly and detained all witnesses for statements. The reports confirmed what actually happened: Brian had not started the fight—he was acting in self-defense.
Insurer Labels the Policyholder a Criminal
After the funeral, Sue submitted a claim to collect Brian’s life insurance benefits. She expected the process to be straightforward. To her shock, the insurer denied the claim outright. The reasoning? They claimed that Brian died during the commission of a felony—namely, assault and battery—due to the punch he threw during the altercation. Citing the felony exclusion clause in his policy, they argued that they were under no obligation to pay.
Sue was blindsided. Brian had acted purely in self-defense, not with criminal intent. Still, the insurance company framed the incident as a felony-level assault, despite all available evidence showing that he was the victim, not the aggressor.
Legal Expertise Exposes the Truth
Fortunately, Sue reached out to an attorney who specializes in denied life insurance claims. The attorney reviewed the case file, including the police reports and multiple witness statements. Every account confirmed that Brian had only defended himself after being physically threatened.
Under the law, self-defense is a complete defense to assault charges. If Brian had survived, there’s no doubt he would have never been convicted—or even charged. But because he wasn’t alive to defend himself, the insurer tried to paint him as a criminal.
Armed with the facts, Sue’s attorney filed an appeal and argued that the felony exclusion didn’t apply. He demonstrated that not only was Brian not the aggressor, but the circumstances clearly fell under lawful self-defense. The insurance company, under pressure and facing a potential lawsuit, reversed its decision. Sue received the full benefit payout that was rightfully hers.
Why This Happens—and How You Can Fight It
This case is just one of many where life insurers misuse exclusions to deny claims. The felony exclusion, in particular, is a favorite among insurers because it gives them a way to exploit tragic situations where the full story isn’t immediately clear. They hope beneficiaries won’t have the resources—or the resolve—to push back.
But you don’t have to face this fight alone.
If your loved one’s claim has been denied and the explanation doesn’t feel right, there’s a good chance something is amiss. The key is to act quickly and contact an attorney who knows how to navigate the complex world of life insurance denials.
Know Your Rights as a Beneficiary
Life insurance companies are not the final authority on whether a claim should be paid. You have the right to:
Receive a written explanation for any denial
Access the records used to make the denial decision
Appeal the decision internally, and
Take legal action if necessary
Most importantly, you have the right to legal representation. An experienced attorney can force insurers to take a second look—often resulting in a complete reversal.
Conclusion: Don't Let a Misused Exclusion Keep You from Justice
Life insurance is meant to protect families during their darkest moments—not to give corporations an excuse to turn grief into profit. If you’re facing a denial based on the felony exclusion or any other questionable justification, let our firm help. We focus exclusively on life insurance disputes and have a proven track record of overturning unfair denials.
Like Sue, you may discover that the key to unlocking the benefits your loved one earned is simply having the right attorney in your corner.