What to Do If a Life Insurance Company Is Delaying Payment
Life insurance exists to protect loved ones after a loss. But when insurers delay or deny payment, it can add financial strain to grief. Insurers must make timely decisions—usually within 30 to 60 days—and delays beyond that are often unjustified. Learn why insurance companies stall and what legal steps to take to secure your payout fast.
Life insurance was never meant to become a burden after death. Yet for many beneficiaries, receiving the payout becomes a second tragedy—one marked by bureaucratic red tape, vague excuses, and seemingly endless waiting. While policies promise peace of mind, insurers are businesses at their core. The longer they hold onto premium dollars without paying out benefits, the more they profit from investments and interest. This conflict between corporate profit and personal tragedy can lead to painful claim delays. These tactics aren't always rooted in necessity or policy requirements—they're often strategic. Life insurers know that grieving families are vulnerable, and in that vulnerable state, few people fight back. That's where experienced life insurance lawyers come in. We understand these delay tactics and have spent years holding insurers accountable. Below, we unpack why delays happen and what you can do to protect your rights.
Delays Beyond 30 to 60 Days May Be Illegal
Most states require life insurance companies to process and make decisions on claims within a reasonable time frame—typically 30 to 60 days. When the cause of death is undisputed, documentation is complete, and all policy conditions have been met, there's no reason for the process to drag out. Yet, in many cases, it does. Insurers often hope claimants are unaware of these legal deadlines. The goal is simple: delay, deflect, and discourage. However, as soon as a lawyer enters the picture, the timeline tends to change quickly. Insurers realize they can’t take advantage of someone who understands the law and is prepared to act. The longer you wait to get legal help, the longer you give them room to delay your rightful payment.
Investigations Have Limits—and So Should the Excuses
Yes, insurers have a right to investigate suspicious claims, especially when the circumstances surrounding the death are unclear. But this right does not extend indefinitely. We frequently see insurance companies assert they're “waiting on additional records” or “still reviewing the circumstances” long after all relevant evidence is already in their possession. Some go as far as contradicting official rulings. For instance, an autopsy might conclude accidental death, yet the insurer may claim it’s investigating a possible suicide just to prolong the process. These are not rare occurrences—they are calculated strategies to reduce payouts or wear down the claimant’s resolve.
Get Legal Help Before a Denial Is Issued
One of the most common mistakes beneficiaries make is waiting until their claim is denied before seeking legal help. This puts you in a reactive position, often requiring you to go through time-consuming appeal processes or even litigation. If instead you consult a life insurance lawyer during the delay phase, you may be able to stop the denial from ever happening. A well-timed legal intervention can push the insurer to act, avoid procedural obstacles, and result in payment within days. The mere presence of legal representation changes how the insurer views your claim. They understand you won't be easily misled and that you're prepared to challenge any unlawful decision.
You Can Still Be Paid If No Body Is Found
Some of the most heart-wrenching cases involve people who’ve gone missing and are presumed dead. Insurance companies often use the absence of a body to delay claims indefinitely, even in the face of overwhelming evidence—like a plane crash, natural disaster, or documented disappearance under fatal circumstances. In such cases, courts can issue a “presumption of death,” which compels the insurer to treat the claim as valid. This process isn’t easy to navigate without legal guidance, but with the right support, families can secure the benefits they’re entitled to without years of unnecessary delay.
Suicide Doesn’t Always Mean a Claim Denial
Many people mistakenly believe that suicide automatically disqualifies a life insurance claim. Insurance companies are well aware of this misconception and sometimes use it to their advantage. They'll tell beneficiaries they're investigating the possibility of suicide, hoping to stall payment or avoid it altogether. But most policies only contain suicide exclusions for the first two years (sometimes three). If the policyholder died after this period, even a confirmed suicide may not be a valid reason to deny the claim. It's crucial to examine the policy language and timelines carefully—and this is another area where an experienced attorney can make all the difference.
Other Common Delay Tactics
In addition to the above strategies, insurers often blame delays on incomplete paperwork, missing death certificates, or questions about policyholder identity. Some even request redundant forms or duplicate records. While these issues can occasionally be legitimate, more often they are delay tactics. Beneficiaries without legal support may feel overwhelmed or unsure of how to respond. But remember—every day your claim sits unpaid is another day the insurer profits from holding that money.
The Bottom Line: Don’t Wait for a Denial to Act
Too many families accept delay after delay, not realizing they’re being manipulated. Others assume the delay is standard or unavoidable. But the reality is this: most delayed life insurance claims are the result of stalling, not necessity. If your claim is being delayed beyond a reasonable timeframe, or if the insurer keeps changing its story, it’s time to act. Our firm has resolved hundreds of delayed and denied life insurance claims. We know how to pressure insurers to make fair decisions—and fast. Don’t face this alone. Call us today and let us help you get the payout your loved one intended for you to receive.