Purchasing life insurance is one of the most meaningful steps you can take to ensure your loved ones are financially protected in the event of your passing. However, what many policyholders don’t realize is that certain omissions, inaccuracies, or misrepresentations—intentional or not—can result in a denied claim later on. When this happens, grieving family members may be left without the funds they were depending on, compounding their emotional loss with financial hardship. That’s why it’s critical to understand the common reasons life insurance claims are denied and how to avoid them. If your claim has already been denied or delayed, it’s time to speak with a life insurance attorney.
Smoking and Life Insurance: Why Full Disclosure Matters
Tobacco use is one of the most frequently misrepresented facts on life insurance applications. Some people lie about smoking to receive a lower premium, assuming the insurer won’t find out. But if the insured dies and an autopsy, medical records, or toxicology report reveals nicotine use, the insurer may deny the claim entirely—leaving the family without benefits. Even if you’ve quit, you may still need to report yourself as a smoker depending on how recently you stopped. Most insurers require you to be tobacco-free for at least one to five years before considering you a non-smoker. Cigarettes, cigars, chewing tobacco, and even nicotine patches or vaping products can be factored into this classification. Being honest about your smoking status may raise your premiums, but it’s far better than risking a complete denial of the claim your family is counting on.
Criminal History and Background Checks: Be Upfront
Many life insurance providers perform background checks before issuing a policy. Criminal charges such as DUI, drug possession, or repeat driving violations can impact your eligibility or rates. Hiding this information is a serious mistake. While not all criminal history will prevent you from getting coverage, misrepresenting or concealing that information can give the insurer a reason to rescind the policy later. If your policy is voided because of false statements on the application, your beneficiaries may receive nothing—even after years of paying premiums. Whether the charge was recent or from years ago, be transparent. A skilled broker or insurance attorney can help you find a company willing to underwrite your policy based on your complete background.
Health Conditions Must Be Disclosed Honestly
Failing to disclose a known medical condition is one of the leading reasons life insurance claims are denied. When you apply for a policy, the insurer will typically request access to your medical records and prescription history. If you state that you're in good health but fail to mention chronic conditions such as diabetes, heart disease, or cancer, the insurer may refuse to pay after your death. Even if the condition doesn’t directly cause your passing, the misrepresentation itself can be grounds for rescission. It’s also important to answer application questions fully and carefully. Leaving out key details—even accidentally—can trigger a denial. The best course of action is full honesty. You may pay a slightly higher premium, but you’ll have peace of mind knowing your loved ones won’t face unexpected claim challenges.
Mental Health Matters—And Needs to Be Disclosed
Lying or omitting information about mental health issues like depression, anxiety, bipolar disorder, or prior suicide attempts is another mistake that could jeopardize your life insurance claim. Some applicants assume they won’t qualify for coverage if they disclose mental health concerns, but this is often not true. Many insurers now offer policies to applicants with mental health conditions, provided they are receiving treatment or have stable medical histories. In fact, hiding these issues is far more damaging than disclosing them. If the insured dies by suicide or an event linked to an undisclosed mental health issue, the insurer may use this as grounds to deny payment. Again, it’s not the condition itself that leads to denial—it’s the concealment.
The Contestability Period and What It Means for You
Life insurance policies generally contain a contestability clause, usually lasting two years from the date the policy takes effect. During this time, the insurer can investigate and deny a claim if it discovers that the policyholder made a material misrepresentation. After the two-year mark, the insurer can only deny a claim if it can prove intentional fraud—a much harder standard to meet. This clause protects insurers from applicants who deliberately falsify information, but it also creates a window during which your claim is most vulnerable. That’s why accuracy and transparency at the application stage are crucial.
What to Do If Your Life Insurance Claim Is Denied
If your loved one’s life insurance claim has been denied or delayed, you may feel overwhelmed and unsure of what to do next. Do not assume that the insurer’s decision is final. Many denials are based on errors, misinterpretations of policy language, or aggressive use of exclusions during the contestability period. A qualified life insurance lawyer can evaluate the denial letter, examine the policy terms, and determine whether the insurer acted improperly. Our team has successfully overturned thousands of denied claims and recovered millions of dollars for beneficiaries across the country. We’ll negotiate with the insurer on your behalf, prepare your appeal, and file a lawsuit if necessary to get the money your family is owed.
Contact Our Life Insurance Attorneys for a Free Consultation
If your life insurance claim was denied due to smoking history, health misstatements, or application errors, we can help. We’ve seen every excuse insurers use to deny payment, and we know how to fight back. Our consultations are free, and you don’t pay unless we win your case.
Call today and let us help you secure the benefits your loved one intended you to receive.