Can life insurance companies deny claims based on suspicion of murder?
Yes—but only under very specific circumstances. If a life insurance company believes a beneficiary was involved in the insured’s death, it may delay or deny the claim. However, such a denial is only legally valid if there's substantial evidence linking the beneficiary to the crime. Being accused is not the same as being guilty, and many wrongful denials are made on nothing more than suspicion. If you’ve been denied life insurance proceeds due to an unresolved death investigation, you still have legal options.
Why life insurers may deny claims after a suspicious death
As attorneys who specialize in overturning wrongfully denied life insurance claims, we find ourselves challenging insurers constantly. Still, there are rare situations where even we acknowledge a claim denial may be justified. One of those is when the beneficiary has been convicted of murdering the insured.
The principle is simple and widely accepted: no one should profit from a death they intentionally caused. This is known in law as the slayer rule, and it exists across most jurisdictions. It prevents individuals from receiving an inheritance, trust proceeds, or life insurance payout if they were responsible for the decedent’s death. But here’s the critical point: for the rule to apply, there must be a criminal conviction or overwhelming evidence. Mere suspicion isn’t enough.
Unfortunately, some insurance companies exploit gray areas. They use unresolved murder investigations as a way to stall or outright deny a legitimate claim—even when the named beneficiary has been officially cleared by law enforcement. These “provisional denials” are not only deeply distressing for the surviving family members but also legally questionable.
The murder of Brad: a life insurance claim blocked by suspicion
One such case involved Brad, a well-liked businessman and father of two, who was tragically murdered in his home. He was shot execution-style while his wife, Kathy, was away on a business trip. She returned to discover his body and immediately called the police.
As is standard in most homicide investigations, authorities initially considered Kathy a prime suspect. But it didn’t take long for her to be cleared. Kathy had been staying at a hotel with a coworker who confirmed she never left the room that night. Investigators scoured her digital devices and personal communications. Far from uncovering marital tension, they found emails to friends expressing deep appreciation for her husband and their marriage.
The police eventually issued internal reports confirming that Kathy was no longer a suspect, and the investigation turned toward unknown perpetrators. However, despite the police moving on, the life insurance company did not.
Accused by implication, denied without cause
Brad’s life insurance policy named Kathy as the sole beneficiary. After his death, Kathy filed the claim and submitted the necessary documents, including the death certificate, police reports, and even newspaper articles covering the incident. She assumed the process would proceed as expected—after all, she had been officially cleared by law enforcement.
Instead, she received a denial letter. The insurance company claimed that because no one had been arrested or convicted, they could not “conclusively exclude” her from suspicion. Therefore, they issued a provisional denial, saying they would not process the claim until someone else was formally charged and convicted.
To Kathy, it felt like being accused all over again—despite overwhelming evidence to the contrary.
Legal intervention turns the tide
Faced with this unjust treatment, Kathy contacted our law firm, which focuses exclusively on denied life insurance claims. We were honest with her: these cases are incredibly challenging. When a murder remains unsolved, insurers often take a risk-averse stance and refuse to pay out benefits, even when it’s inappropriate to do so.
Still, Kathy’s case stood out. The police had not just dropped her as a suspect—they had issued written internal conclusions stating she was not involved. Our legal team gathered sworn declarations from the lead investigators and requested a formal hearing with the insurer’s internal appeals board.
At the hearing, we presented:
Testimony from the chief homicide investigator
Sworn statements verifying Kathy’s airtight alibi
Communications showing a healthy marriage
Evidence that law enforcement had no reason to believe she was involved
The presentation was compelling, and ultimately the insurer reversed the denial. Kathy received the full payout of Brad’s life insurance policy.
When suspicion is not proof: fighting unjust life insurance denials
Kathy’s story is one of many where insurance companies use “suspicion” as a tool to delay payments. While the slayer rule is important, it must be applied carefully and only when legal thresholds are met. Without a conviction, a beneficiary must be presumed innocent—and insurers must follow the law, not their own biases.
If you’ve been denied a claim because of an ongoing investigation, it’s critical to seek legal help. You do not need to wait indefinitely while the insurer hides behind procedural excuses. An experienced life insurance attorney can challenge the denial, present evidence, and even pursue litigation if the company refuses to act in good faith.
FAQ: Life Insurance Denials Due to Alleged Murder Involvement
Can a life insurance company deny a claim if the beneficiary is a suspect in a murder?
Yes, temporarily. However, they must reverse that position if the beneficiary is cleared or never charged. They cannot indefinitely delay or deny payment without credible, ongoing evidence.
What is the slayer rule in life insurance?
The slayer rule prevents anyone from receiving life insurance proceeds if they were responsible for the policyholder’s death. But it usually requires a criminal conviction to apply.
Do police have to clear a beneficiary before a claim is paid?
Not formally. However, if law enforcement states that a beneficiary is no longer a suspect, this can strongly support a claim that should be paid.
What can I do if I’ve been wrongfully denied because of suspicion?
Hire an attorney immediately. Legal representation is often necessary to challenge these denials and present the appropriate evidence to force payment.
Can insurers delay claims indefinitely if a murder case is unsolved?
No. While some delay may be expected, prolonged withholding without justification can constitute bad faith—and you may be able to sue for damages.