Although life insurance companies often claim they deny only a small percentage of claims, many beneficiaries are blindsided by denied claims. Understanding the common reasons for life insurance claim denials can help you identify whether the insurer has a valid justification or if the denial is an unfair tactic.
Here are the top reasons life insurance claims are often denied:
Material Misstatements: The most common reason life insurance claims are denied is a material misstatement by the insured during the application process. This may include failing to disclose a medical condition or making an error in personal information. However, not every misstatement is material, and many times the insurance company will wrongfully deny a claim based on minor details. If this happens, legal action can often force them to reverse their decision.
Lapsed Coverage: Another common denial reason is that the insured allegedly failed to make a payment, causing the policy to lapse. However, it’s important to investigate whether the payment was made within the grace period, as many claims are denied even though the premium was paid on time. Legal help can help beneficiaries recover the full benefits even in cases of lapsed coverage.
Cause of Death Disputes: Some policies have specific exclusions, such as not covering death by suicide within the first year or excluding certain accidents. While some causes of death are clearly defined in policies, others may be up for interpretation. Insurers might deny a claim if the cause of death is disputed. In many cases, this denial can be successfully challenged, especially if the cause of death is ambiguous or the policy language is unclear.
Regardless of the reason the insurance company offers for a claim denial, it’s important to remember that you don’t have to accept their decision as final.
Denied Life Insurance Claims Can Cause Financial and Emotional Stress
Life insurance is often the financial safety net for grieving families. When a life insurance claim is denied, beneficiaries—especially spouses, children, or dependents—are left to figure out how to adjust to life without their loved one’s financial support. The emotional toll of losing a loved one is compounded by the financial stress of having to deal with a claim denial.
Many beneficiaries mistakenly believe they cannot fight a denial, especially when they are already facing significant emotional and physical stress. However, denied claims can often be overturned with the right legal approach. A skilled life insurance attorney can help you challenge the insurer’s decision and secure the benefits your loved one intended for you.
How a Life Insurance Claim Denial Attorney Can Help
The stress of dealing with a denied claim can be overwhelming, particularly when you're already grieving. Working with an attorney who specializes in life insurance denial cases can help alleviate the burden and allow you to focus on your emotional recovery while your lawyer fights for your rights.
Attorneys experienced in life insurance denials understand the ins and outs of policy terms, legal interpretations, and the tactics used by insurance companies to avoid paying claims. A lawyer can:
Investigate the cause of the denial and review policy details.
Challenge wrongful claims of material misstatements or lapsed coverage.
Argue for the proper interpretation of policy exclusions and disputed causes of death.
Help you secure the life insurance benefits you are entitled to.
Contact a Life Insurance Benefits Denial Attorney Today
If your life insurance claim has been denied, don’t accept the decision without exploring your options. Contact a life insurance attorney as soon as possible to learn how you can challenge the denial and secure the benefits owed to you. Our free consultation allows you to discuss your case with an experienced attorney who can guide you through the process.
Don’t let a life insurance claim denial add to the stress during this already difficult time. Let us help you get the compensation you deserve.