Can a Life Insurance Company Deny a Claim by Accusing the Beneficiary of Murder? Yes—But Often, They're Dead Wrong
At our law firm, we’ve spent years fighting against wrongful life insurance claim denials, and there are very few tactics life insurance companies use that still shock us. But every once in a while, we come across a case so heartless and baseless that it reminds us why we do what we do. This is one of those cases—where a grieving widow was accused of killing her husband, not by the courts, not by law enforcement, but by the life insurance company that was supposed to provide her with peace of mind.
To be clear, life insurance companies are not in the business of paying out claims easily. As for-profit corporations, they are incentivized to minimize payouts and maximize premium collections. That business model is not illegal. But denying legitimate claims based on wild accusations, especially in the absence of any supporting evidence, crosses a line into bad faith conduct—and that’s where we step in.
A Tragic Anniversary and an Unthinkable Accusation
Joe and Julie were the couple everyone admired. Married for ten years, they had built a life together full of love, plans, and purpose. To celebrate their tenth anniversary, they went out for a romantic dinner downtown. Joe enjoyed a few glasses of wine, while Julie, who wasn’t much of a drinker, had just a single beer. After dinner, she offered to drive home so Joe could relax. They stopped by a drugstore for last-minute travel supplies—they had a dream trip to Hawaii scheduled for the next morning.
That’s when tragedy struck.
While attempting a left turn across a two-lane highway, Julie failed to see an oncoming car—partially obscured by the setting sun—and the vehicle crashed into the passenger side of their car. Joe was killed instantly. Julie suffered serious injuries but survived. It was a tragic, random accident. At least, that’s what the police determined after their investigation. They found no evidence of intoxication, no recklessness, and no foul play. Just heartbreak.
The Life Insurance Denial That Crossed Every Line
In the weeks following the crash, Julie—while still recovering physically and emotionally—handled the painful task of managing Joe’s affairs. She filed a claim for death benefits under Joe’s life insurance policy. What came next was unthinkable: the insurance company denied the claim, citing a clause that prohibits payment when the beneficiary “intentionally causes the death of the insured.” In plain English, they were accusing Julie of murdering her husband.
There was no arrest. No criminal charges. No suspicion from police. The official reports supported her innocence. Still, the insurer chose to invoke a slayer clause based purely on its own unfounded speculation. For Julie, the emotional toll was unbearable. She began to question herself. Would others believe the insurer’s accusation? Would her husband’s legacy be tarnished? Grief turned to shame, fear, and overwhelming confusion.
How a Legal Team Fought Back—and Won Big
Luckily, Joe’s best friend was an attorney. He immediately recognized the claim denial for what it was—an egregious abuse of policy language and a textbook case of bad faith. He connected Julie with a lawyer who specialized in life insurance denials, and together they launched an aggressive legal challenge. They filed a lawsuit against the insurance company, asserting two causes of action: breach of contract and insurance bad faith, the latter of which opened the door for punitive damages.
At trial, the attorneys presented the full police investigation, the toxicology reports, the eyewitness accounts, and the crash reconstruction findings—all of which confirmed that the accident was not intentional. In contrast, the insurance company had no admissible evidence—only a vague, unsupported claim that the turn was “deliberate.” It was a strategy built on fear and bluster, not facts.
The court sided firmly with Julie. The jury awarded her the full death benefit plus three times that amount in punitive damages, sending a clear message to the insurer: you cannot invent a motive to avoid payment. Julie got the justice she deserved, but the emotional scars ran deep. For months, she lived under the cloud of a false accusation, all because an insurance company wanted to save money.
The Slayer Rule and When It Does Apply
To be clear, slayer statutes exist in every state, and they are legitimate. These laws bar a person from collecting life insurance proceeds if they intentionally and unlawfully cause the death of the insured. But in order to apply the slayer rule, the beneficiary must typically be convicted—or at minimum, there must be clear and convincing evidence that they were responsible.
It’s not enough for an insurance company to simply guess or make an unsupported assumption. That’s not the law. That’s not justice. And it’s why these denials, when handled by experienced attorneys, are often reversed.
Insurance Companies Will Push Boundaries—Until Someone Pushes Back
Unfortunately, this was not the first case we’ve seen where a life insurance company accused a grieving spouse or family member of intentionally causing a death. They do it because they can. Unless someone pushes back, they lose nothing by making the attempt. But if you have the right legal team, you can hold them accountable—and in many cases, you can recover much more than just the death benefit.
If you’ve been denied a life insurance payout based on a slayer clause or any accusation that feels unfair, baseless, or cruel—don’t stay silent. Contact our law firm today for a free consultation. We will review the denial, gather the evidence, and fight to get the justice you and your loved one deserve. You won’t pay us a dime unless and until we recover money for you.