Most people have at least heard of the suicide exclusion in life insurance policies. But what you may not know is that many policies contain another, often overlooked clause: the felony exclusion. This provision allows an insurance company to deny a death benefit if the policyholder dies while committing a felony. While this might sound like a clause that only applies to hardened criminals, the reality is more unsettling—even good people can make bad decisions that carry felony-level consequences.
Life insurance policies function like any other insurance contract. They explain what’s covered, list exclusions, and provide terms under which coverage might lapse. What many beneficiaries never expect, however, is to be told that their loved one’s life insurance payout is void because of the circumstances surrounding their death—especially if the death occurred during something as seemingly minor as a prank or a favor for a friend.
What Is the Felony Exclusion?
The felony exclusion is a clause that says if the insured dies while engaging in a felony, the insurance company is not obligated to pay the death benefit. Insurers justify this by claiming that criminal conduct is a known risk factor—especially felonies, which involve serious violations of the law. That logic may seem sound in cases involving violent crime or armed robbery, but the exclusion has the potential to be applied far more broadly than most people realize.
Even actions that might seem harmless or even helpful could fall under felony statutes depending on the jurisdiction and the technical interpretation of the law. The unfortunate truth is that insurers often look for any reason to deny a claim—and the felony exclusion, vague as it is, gives them a lot of wiggle room.
Real-Life Examples of How Felony Exclusions Could Apply to Everyday Situations
Here are a few real-world scenarios that, while written with a dose of humor, highlight how surprisingly easy it can be to trigger a felony exclusion without realizing it:
1. Borrowing a Friend’s Social Media Account
You’re hanging out with a friend and decide to prank them by posting something funny from their social media account. While it seems harmless enough, accessing someone’s online account without permission can fall under federal statutes for wire fraud or computer intrusion. These crimes may be classified as felonies, depending on the circumstances. If the person dies shortly after doing this—even if the death is unrelated—the insurer could technically invoke the felony exclusion to avoid paying out.
2. Sharing Old Prescription Medication
You have leftover pain medication from an old injury. A friend with back pain calls and asks for help, so you bring them a few pills. It may sound generous, but distributing a controlled substance without a license is a felony in nearly every state, and it doesn’t matter that your intent was to help. If an insured dies in the course of this act—for example, in a car accident on the way over—the insurer might argue that the death occurred during the commission of a felony, triggering the exclusion.
3. Destroying or Vandalizing a Mailbox
In some rural areas, mailbox “wars” are practically a rite of passage. But few people know that tampering with a mailbox is a federal offense. Mailboxes are considered federal property, and vandalizing one—even as a joke—can carry felony charges. If an insured dies during or shortly after this act (for example, in an accident while fleeing the scene), the felony exclusion could come into play.
4. DUI-Related Deaths
One of the most common and tragic applications of the felony exclusion is when someone dies in a drunk driving accident—especially if another person is injured or killed. Even if the deceased was otherwise a law-abiding person, DUI-related deaths are often felonies, and many insurers will deny claims in such cases. This is particularly devastating for families who are already grieving an unexpected loss.
Can Insurers Really Deny Claims for These Reasons?
Yes—and they do. Insurance companies are often looking for any justification to deny a claim. If they find evidence suggesting that the insured died during a felony, they may invoke the exclusion without hesitation. And since the burden often falls on the beneficiary to challenge the denial, many families simply accept it, not realizing they may have grounds to fight back.
However, not all felony exclusions are created equal, and there are several important legal defenses a beneficiary can raise:
The felony was unrelated to the cause of death
The act doesn’t meet the legal threshold for a felony in that state
The exclusion language in the policy is vague or overly broad
The insurer has applied the exclusion inconsistently
Life insurance denial cases involving the felony exclusion can be won—but they require legal expertise and a strong understanding of insurance and criminal law.
What Should You Do If Your Life Insurance Claim Was Denied Based on a Felony Exclusion?
If you receive a claim denial citing the felony exclusion, don’t panic—and don’t assume the insurer is right. These denials can often be challenged, especially when the activity in question was not violent, premeditated, or clearly criminal in nature. Life insurance companies have a long history of abusing vague policy language, and exclusions like this are fertile ground for wrongful denial.
Our law firm specializes in challenging unjust life insurance claim denials, including those based on the felony exclusion. We’ve seen cases where insurers overreached, interpreting benign actions as felonious just to dodge payment. In many of these cases, we’ve been able to recover the full death benefit through legal action or settlement.
If you believe your loved one’s life insurance claim was denied unfairly—whether due to a supposed felony or any other questionable reason—contact us today. The consultation is free, and we only get paid if you win. We’re here to help you fight back and secure the benefits your family deserves.