Which Life Insurance Companies Are the Worst at Paying Claims?
Some life insurance companies have a pattern of denying or delaying legitimate claims, leaving grieving families without the financial support they were promised. Whether due to poor customer service, high rejection rates, or tactics aimed at avoiding payouts, certain insurers stand out for the wrong reasons. Below, we break down 70 of the worst life insurance companies when it comes to claim approvals—plus what to do if your claim is denied.
Life Insurance Companies with the Worst Track Records for Claim Payouts
While not every claim denial is wrongful, some life insurance companies have earned a reputation for making the claims process unnecessarily difficult. The list below is based on public complaints, legal cases, and consumer feedback regarding denied claims, slow processing, and poor communication. If your policy is with one of these companies, or if you've had a claim denied, it may be time to talk to a life insurance attorney.
Unum, Globe, MetLife, Colonial Penn, Bankers, Allianz, TIAA, Protective, Cincinnati, AIG, Stonebridge, Geico, Liberty Mutual, Lincoln National, Ethos, True Blue, Choice Mutual, American Fidelity, SBLI, Primerica, Ohio National, Brighthouse Financial, North American, Lincoln Financial, Prudential, American Income, Midland National, The Hartford, Zander, Farmers, Northwestern Mutual, Gerber, New York Life, Freedom, Mutual of Omaha, Aetna, True Stage, Simplified Life, Nationwide, Guardian, Assurity, Illinois Mutual, American United, State Farm, Foresters Financial, Haven, Fidelity, AAA, Voya Financial, Lincoln Heritage, Navy Mutual, AXA, Global Atlantic, Amica, Securian Financial, American General, Principal, Liberty National, American Family, John Hancock, Americo, Pacific Life, Genworth, Bestow, United Home, Ameriprise, Progressive, MassMutual, AARP, Vantis
If your life insurance claim is with one of these companies and you've hit roadblocks, you’re not alone—and you may have legal options.
What to Do If Your Life Insurance Claim Is Denied or Delayed
Receiving a life insurance denial letter during an already painful time can feel overwhelming. But a denial doesn't mean you're out of options. Many life insurance claims are wrongfully denied, and beneficiaries have a legal right to challenge the decision. The key is knowing when to push back and how to do it effectively.
Common Reasons Life Insurance Claims Are Denied
Insurers use a variety of reasons to deny claims—some valid, others more questionable. Among the most common:
Misrepresentation on the Application: Insurers may allege that the insured provided false or incomplete information about their health or lifestyle, even if it was an honest mistake.
Lapsed Policies: If premiums weren’t paid and the policy lapsed, insurers might deny the claim. However, reinstatement and grace period provisions could make the policy enforceable.
Suicide Clause: Many life insurance policies include a two-year contestability period. If the death occurs by suicide during this time, the insurer may deny the claim.
Medical Nondisclosure: If the insurer believes the insured failed to disclose a relevant pre-existing condition, they may claim the policy was obtained fraudulently.
Technicalities and Ambiguities: Vague policy language and overly broad exclusions are often used as a pretext to deny otherwise legitimate claims.
How a Life Insurance Attorney Can Help
Life insurance companies count on beneficiaries not understanding their rights. A skilled life insurance attorney can level the playing field and significantly increase your chances of receiving the benefits your loved one intended for you.
Here’s how legal help makes a difference:
Thorough Policy Review: Attorneys scrutinize policy language, including exclusions and riders, to find openings for appeal.
Claims Investigation: A lawyer will investigate the facts of the case and identify whether the insurer’s reasons for denial are legally defensible.
Appeals Preparation: A strong, evidence-backed appeal can convince an insurer to reverse its decision. Your attorney will build a compelling case tailored to your specific denial.
Litigation, if Needed: If appeals fail, your attorney can file a lawsuit and take the insurer to court to enforce the contract and recover damages.
How the Life Insurance Claims Process Typically Works
Understanding the standard claims process can help you identify when something is going wrong:
Filing the Claim: The beneficiary submits a death certificate and claim form to the insurer.
Review and Verification: The insurer reviews the application and death certificate and may request additional documentation.
Decision: Ideally, the claim is paid within 30–60 days. However, if red flags appear—or if the death occurred within the contestability period—the process can slow or stop altogether.
When Should You Hire a Lawyer for a Life Insurance Claim?
If your claim is:
Delayed for more than 60 days without explanation
Denied due to vague or unclear policy terms
Denied based on allegations of misrepresentation
Rejected due to a lapse in coverage or grace period issue
Questioned because of how the insured died
…it’s time to speak with a life insurance attorney. The sooner you act, the better your chances of recovering the full death benefit.
Why Life Insurance Denials Are Often Worth Challenging
Many life insurance denials are based on weak or ambiguous reasoning. Insurers hope you’ll accept their word and walk away. But in many cases, a denial letter doesn’t reflect the whole truth—or even comply with the law.
Legal intervention has helped thousands of families reverse wrongful denials, especially in cases involving:
Claims filed during the contestability period
Complex medical histories
Disputes over beneficiary designations
Lapsed policies where grace periods or automatic reinstatement clauses apply
Alleged suicides that don’t meet the policy’s threshold for exclusion
Get Legal Help for a Denied Life Insurance Claim
If your life insurance claim has been denied or delayed, don’t wait. Contact a life insurance attorney who focuses on helping beneficiaries recover what they’re owed. With more than 20 years of experience, our firm has helped families across the country secure millions in denied benefits. We know the tactics insurers use—and we know how to fight back.
Whether your issue involves a large insurance company or a lesser-known provider from the list above, we’re here to help you understand your options and take the next step forward.
FAQ: Life Insurance Denials and Delays
How long should a life insurance claim take to process?
Most life insurance claims are processed within 30–60 days. If it takes longer, request a written explanation and contact an attorney if you're not satisfied.
Can an insurance company deny a valid life insurance claim?
They can try, but denials based on flimsy reasoning or policy misinterpretations can often be challenged—and overturned.
What does “contestability period” mean?
It’s typically a two-year window after the policy starts during which the insurer can investigate and potentially deny claims based on misrepresentations.
Do I need a lawyer to appeal a life insurance denial?
You’re not required to have one, but legal representation significantly improves your chances of success—especially when complex issues like misrepresentation, suicide clauses, or grace period lapses are involved.
Can I fight a denial based on non-payment of premiums?
Yes. If there was a grace period, pending reinstatement, or auto-payment issue, an attorney can argue that the policy was still in force.