Can a Life Insurance Company Delay Paying a Claim for Years?
Yes—and they often do. Life insurance companies sometimes refuse to issue a decision, instead launching drawn-out “investigations” that can last months or even years. This is especially true when the policy is large, the insured is young, or the cause of death is unclear.
Many states require insurers to act within 60 to 90 days of receiving a life insurance claim. But some companies push the limits—knowing most beneficiaries are grieving, overwhelmed, and unaware of their rights. This article highlights one such case and shows how legal action can force an insurer to finally pay up.
A Promising Life Cut Tragically Short
David was just 17 when his parents, Ron and Sandy, took out a $4 million life insurance policy on him. While unusual, their decision wasn’t without reason. David had been a competitive swimmer since childhood and was a rising star in the world of athletics. With Olympic potential and several full-ride scholarship offers, his future was bright.
His parents had invested heavily in his training, travel, and development over the years. The policy was meant to provide financial protection should the unthinkable happen. Sadly, it did.
Shortly after starting college, David was found floating lifeless in the university’s swimming pool. His coach discovered him early one morning, facedown in the water. Despite immediate emergency response, David could not be revived.
An Unsettling Cause of Death
The autopsy found no drugs or alcohol in David’s system. The only notable injury was a blunt force trauma to the back of his head. The coroner noted the possibility of foul play but ultimately concluded the injury was more consistent with a miscalculated dive or an accidental hit during entry into the water.
With no signs of suicide or homicide, the official ruling listed the death as accidental. But that didn’t stop the insurance company from trying to sidestep its obligation to pay.
The Claim—and the Start of Endless Delays
Ron and Sandy filed a life insurance claim as soon as they could. Given the highly publicized nature of David’s death, the claims adjuster was already aware of the basic facts. What he focused on, however, was the large policy amount and rumors—completely unsubstantiated—that something more sinister might have occurred.
Just weeks after the claim was submitted, the family received a letter stating that the insurer could not yet pay the benefit. The company claimed it needed time to investigate potential policy exclusions. Specifically, it wanted to rule out:
Suicide, by suggesting David may have intentionally jumped into the pool to cause fatal injury
Homicide, implying that his parents may have had a financial motive, since the policy was taken out not long before his death
While this might seem absurd, it’s a strategy used by life insurers all the time: raise doubt, delay the process, and hope the family eventually gives up.
Three Years of Silence and Excuses
Despite promising a thorough investigation, the insurer did very little. They conducted some interviews, reviewed initial police reports, and made vague statements about “ongoing inquiries.” But no new evidence emerged. The coroner’s accidental ruling remained unchanged. And still—no decision on the claim.
Ron and Sandy asked repeatedly for updates. They were told to “be patient.” Meanwhile, the company continued to report the $4 million claim as “unresolved,” which worked in its favor financially. The longer the payout was delayed, the longer it could earn investment income on those funds.
Eventually, after more than three years, Sandy had had enough. She contacted a law firm that specialized in wrongful life insurance claim denials and delays.
Legal Action Forces a Long Overdue Resolution
Upon reviewing the timeline and documentation, the attorney immediately recognized that the insurer had violated state law. In their jurisdiction, insurers are required to issue a clear approval or denial within 90 days of receiving a complete claim.
The lawyer filed a lawsuit for bad faith delay and breach of contract. Faced with litigation and no legitimate justification for further delay, the insurance company quickly agreed to settle. Ron and Sandy received the full policy amount—plus interest.
While it didn’t erase the pain of losing their son, it did provide a measure of justice and helped them move forward financially.
Why Life Insurance Companies Delay Claims
Life insurance companies are in business to make money. When faced with a large payout, especially following an unexpected or controversial death, they look for every possible reason to stall:
Initiating investigations without clear scope or deadlines
Demanding endless documentation from grieving families
Citing rumors or alternative theories not supported by evidence
Claiming ambiguity around exclusions like suicide or homicide
These delays aren’t just frustrating—they can violate state laws and policy terms. Unfortunately, many beneficiaries don’t know their rights or how to push back.
What You Can Do If Your Life Insurance Claim Is Being Delayed
If your claim has been pending for more than 60 to 90 days without a clear decision, take the following steps:
Request a written explanation for the delay.
Ask for a timeline of the insurer’s investigation and a date for expected resolution.
Review your state’s insurance laws, or consult an attorney who can do so for you.
Document all communications with the insurer.
Contact a life insurance lawyer if the delay persists without legitimate cause.
Often, a strongly worded letter from an attorney is enough to get the insurer to act. If not, filing a lawsuit may be the only way to force a decision—and collect what you’re owed.
We Fight Back Against Unfair Delays and Denials
At our firm, we deal with these tactics every day. We know how life insurance companies operate, and we know how to hold them accountable when they abuse their power.
If you’re facing a life insurance claim delay—or if your claim has been wrongfully denied—we can help. Call us for a free consultation. You won’t pay us unless we recover for you.