Denied Liberty Mutual Life Insurance Claim Due to a Simple Application Error? You Still Have Options
Many life insurance claims are denied not because the policyholder did anything wrong—but because of a simple, unintentional error on the application. Unfortunately, even minor mistakes can give insurance companies an excuse to deny legitimate claims. If you’ve had a Liberty Mutual life insurance claim denied for this reason, it’s important to know that you may still be entitled to the full benefit.
Our attorneys recently helped a client recover a $50,000 Liberty Mutual life insurance payout that had been initially denied due to a mistake made on the original application. Despite the denial, we were able to demonstrate that the error was not material to the issuance of the policy and secured a full payment within a short period of time.
This case highlights a common tactic used by life insurance companies: searching for any technicality, however small, to avoid paying out claims. But with the right legal representation, these denials can often be reversed.
Why Do Life Insurance Application Mistakes Lead to Denials?
Life insurance is a contract, and like any contract, it requires full disclosure from both parties. When you apply for coverage, you’re expected to answer all questions truthfully and completely. However, most people don’t realize just how much scrutiny their answers will undergo—especially after the policyholder passes away and a claim is filed.
Insurance companies often revisit the original application during the claims process, especially if the policyholder died within the contestability period (usually the first two years of the policy). If they discover any inaccuracy, they may try to void the contract entirely—even if the mistake was harmless.
But not all errors are grounds for denial. For a denial to hold up legally, the insurer must prove that the error was material—meaning they would not have issued the policy or would have issued it under different terms if the truth had been known.
20 Common Mistakes That Could Lead to Life Insurance Claim Denials
Below are some of the most frequent application errors and omissions that can give an insurance company grounds to deny or delay a claim:
Providing incorrect personal information (such as misspelled name, wrong date of birth, or outdated address)
Failing to disclose pre-existing medical conditions
Omitting previous surgeries or ongoing treatments
Misrepresenting or underreporting tobacco or alcohol use
Not disclosing a history of drug use or substance abuse
Leaving out information about high-risk hobbies like skydiving, scuba diving, or racing
Providing inaccurate job details or omitting hazardous employment roles
Failing to mention prior DUI convictions or reckless driving history
Not disclosing mental health disorders or psychiatric treatment
Leaving out dangerous occupations like construction, mining, or firefighting
Misstating income or financial background
Omitting information about existing or past life insurance policies
Not mentioning participation in adventure sports or physically risky activities
Providing incorrect family medical history
Downplaying foreign travel or extended overseas residency
Failing to disclose past bankruptcies or major financial issues
Omitting involvement in ongoing lawsuits or legal matters
Not revealing recent arrests or criminal convictions
Providing inaccurate height, weight, or BMI
Failing to report significant health or lifestyle changes before policy issuance
Even when these omissions are unintentional, insurers may still use them to argue the contract is void—particularly if it helps them avoid a large payout.
How Our Attorneys Get Claims Paid After Denials
At our firm, we focus exclusively on helping clients overcome wrongful life insurance claim denials and delays. When a claim is denied due to a misstatement or omission, we conduct a comprehensive review of the policy, application, and surrounding facts. If the error had no bearing on the cause of death—or the insurer would have issued the policy anyway—we build a case to compel the insurer to reverse its denial.
We also know how to apply pressure. By citing relevant state insurance laws and highlighting the insurer’s obligation to act in good faith, we can often secure payment quickly. In some cases, we even pursue additional interest owed for delays caused by the insurer’s bad-faith conduct.
Don’t Let a Minor Mistake Cost You the Benefits You Deserve
Most beneficiaries are shocked to learn that insurance companies can and will deny claims based on something as small as a misreported height or failure to mention an old injury. But the truth is that life insurance companies are not eager to pay claims—and they will use any reason they can to avoid doing so.
That’s why legal guidance is essential. If your claim was denied due to an error on the application, don’t walk away without speaking to an experienced life insurance attorney. You may still be legally entitled to the full payout, and in many cases, we can resolve these issues without filing a lawsuit.
Our Promise to Clients with Delayed or Denied Claims
We are committed to helping policy beneficiaries receive the money they’re owed—without unnecessary delay or legal complexity. If your claim has been wrongfully delayed, we will contact the insurance company directly and demand prompt payment, including interest on the unpaid amount. We don’t charge any fees unless we recover funds for you.
Every day matters when your family is waiting for a life insurance payout. Let us step in and advocate for you.