$75,000 Denied Protective Life Insurance Claim Successfully Recovered
We are happy to inform the public that our life insurance law firm has successfully recovered a $75,000 denied claim from Protective Life. The claim was initially denied due to a misinterpretation of application information, but our attorneys intervened, presented compelling legal arguments, and secured the full payout for our client. Cases like this underscore the importance of taking proactive steps when applying for and maintaining a life insurance policy. Many denials are preventable, and understanding how to avoid common pitfalls can make the difference between a paid claim and a lengthy legal battle.
How to Proactively Prevent a Life Insurance Claim from Being Denied
Life insurance companies evaluate risk based on the accuracy of the information provided at the time of application. Any material misrepresentation, omission, or failure to comply with policy conditions can result in a denial—especially if a claim is filed during the contestability period. By following industry best practices and maintaining clear, honest communication with the insurer, policyholders can significantly reduce the likelihood of a denial. Here are 20 proactive ways to help ensure a life insurance claim is paid without dispute.
20 Ways to Prevent a Life Insurance Claim from Being Denied
Disclose all relevant information truthfully and accurately on the application. Never hide or misstate facts to obtain lower premiums or increased coverage.
Answer every question on the application, even if it seems minor. Skipping or leaving responses blank can raise red flags later.
Disclose all preexisting medical conditions, surgeries, and treatments. Omissions can be treated as misrepresentations during contestability reviews.
List any hazardous hobbies or jobs, such as skydiving or commercial fishing. Insurers may deny claims if these are discovered posthumously and were not disclosed.
Report any tobacco, alcohol, or drug use, even if occasional. Misleading responses regarding substance use are a common reason for denial.
Understand all exclusions in the policy, like suicide clauses or foreign travel limitations. These clauses may bar recovery depending on timing and circumstances.
Review policy documents thoroughly after purchase. Check for errors or omissions that could cause future complications.
Notify the insurer promptly about major health or lifestyle changes. Some policies require updates post-issuance, particularly if applying for additional coverage.
Maintain current medical records and provide them if requested. This supports accurate underwriting and helps defend against claim challenges.
Pay premiums on time and set up automatic payments if possible. Lapsed policies are a leading cause of denied claims.
Keep your beneficiary designations up-to-date. Outdated designations can result in disputes, delays, or even denials.
Make sure the policy aligns with your financial goals and risk tolerance. Don’t over-insure based on income or assets, which may trigger extra scrutiny.
Select a well-established insurance company with a strong financial rating. Reputable insurers are less likely to engage in bad faith tactics.
Read all terms and conditions before signing the application or policy. Understanding your rights and responsibilities is key to preventing surprises later.
Work with a licensed insurance agent or broker. They can help ensure proper application completion and policy selection.
Consider policies that offer convertibility or guaranteed renewability. These options provide long-term flexibility and reduce future underwriting risk.
Don’t cancel an existing policy before your new one is fully in force. This prevents gaps in coverage that can leave beneficiaries unprotected.
Provide accurate and up-to-date contact information. The insurer must be able to reach you about important policy updates or payment issues.
Keep a secure copy of the policy and inform your beneficiaries where it is stored. Delayed claims due to missing paperwork are avoidable.
Be transparent and honest in every interaction with your insurer. Misleading statements—even unintentionally—can trigger claim disputes.
The Importance of Legal Support When Denials Still Occur
Even when applicants do everything right, insurers may still deny claims based on technicalities or questionable interpretations of policy language. In the Protective Life case we resolved, the claim was initially denied due to an alleged discrepancy in health disclosures. We demonstrated that the information was not material and that the insurer failed to investigate during the underwriting process. Our legal intervention led to the full $75,000 payout. If your claim has been denied despite your best efforts, contact a life insurance lawyer immediately. Many denials can be overturned with the right legal strategy.
FAQ: How to Avoid Life Insurance Claim Denials
Can a life insurance claim be denied even if I told the truth on the application?
Yes, unfortunately. Insurers may claim an omission or misinterpret application answers. However, honest mistakes can often be defended, especially with legal help.
Why is it important to disclose minor medical conditions?
Even minor conditions may point to a larger health issue. Failing to disclose them could be treated as a material misrepresentation during the contestability period.
Is a life insurance policy still valid if I miss one premium payment?
It depends. Most policies have a grace period (usually 30–31 days). If payment isn’t made within that time, the policy may lapse, resulting in denial.
What happens if I forgot to disclose a dangerous hobby?
If the insurer discovers it after a fatal accident, they may deny the claim based on increased risk. Always disclose high-risk activities during the application process.
Do I need to tell my insurer about a health change after my policy starts?
Generally, no—unless you're applying for a new policy or rider. However, some policies require updates under certain conditions. Check your policy language.
Can I change my beneficiaries after the policy is issued?
Yes, unless the beneficiary is irrevocable. Always update your designations after major life changes like divorce, remarriage, or birth of a child.
Is it better to work with an agent when applying for life insurance?
Yes, a licensed agent can help you complete the application accurately and ensure the policy meets your needs. They can also explain coverage options and exclusions.
Can an old policy be denied decades later?
After the contestability period (typically two years), insurers can only deny claims for proven fraud. Errors or minor misstatements usually cannot void the policy after that.
Should I keep copies of my life insurance documents?
Absolutely. Keep a copy of the full policy and all updates, and make sure your beneficiaries know where to find it. Delays in locating policy documents can stall payment.
Can my claim be denied because the insurer couldn’t reach me?
Possibly. If they need updated forms or payment and can’t contact you, your policy could lapse. Keep your contact information current with the insurer.