$162,100 Central Life Insurance Claim Dispute Successfully Resolved
We’re pleased to announce the successful resolution of a $162,100 life insurance claim dispute with Central Life Insurance. Our client faced a denial after a loved one’s death, but with skilled legal advocacy, we reversed the insurer’s decision and recovered the full benefit. If your claim has been delayed, denied, or disputed, you're not alone—and you may have a strong case to challenge the outcome.
Why Do Life Insurance Companies Deny Claims?
While many people assume life insurance claims are only denied due to fraud or misrepresentation, there are several reasons insurers may try to avoid paying out. Understanding these reasons can help beneficiaries and policyholders identify red flags early—and take action before it’s too late.
1. Non-Disclosure of Material Information
Unlike misrepresentation, where false information is provided on an application, non-disclosure involves leaving out critical details. This could include past medical conditions, smoking history, or dangerous hobbies. If the insurer later discovers these omissions—and deems them material to the underwriting decision—it may use that as a reason to deny the claim. Even accidental omissions can be scrutinized during the claim review, especially if the death occurs within the first two years of the policy.
2. Policy Exclusions for High-Risk Activities
Most life insurance policies contain exclusions that specify situations where no payout will be made. Common exclusions include death due to suicide within the first two years, death while engaging in high-risk sports (such as skydiving or scuba diving), or fatalities related to war or criminal activity. If the cause of death falls within an exclusion, the insurer can legally deny the claim—even if all premiums were paid and no misrepresentations were made.
3. Pre-Existing Conditions Within the Waiting Period
Many policies include a waiting period—typically one to two years—during which deaths related to pre-existing medical conditions may not be covered. If the insured passes away due to a condition they had before the policy took effect, and the waiting period hasn't lapsed, the insurer may use this provision to avoid paying. It’s essential to understand how waiting periods differ from contestability periods and what conditions are included.
4. Contestability Period Denials
The contestability period is a critical phase in every life insurance policy. Usually lasting the first one to two years after the policy becomes active, this window allows insurers to investigate claims more thoroughly. If death occurs during this time, the insurer will review the original application for discrepancies. Even minor inconsistencies—such as misstated weight or outdated medical history—may be cited as grounds for denial. However, not all denials during this period are valid, and many can be successfully challenged with legal help.
5. Policy Lapse Due to Non-Payment of Premiums
One of the most avoidable reasons for a denied claim is policy lapse. If the insured fails to make timely premium payments and doesn’t take advantage of the grace period, the policy may be terminated. If the death occurs after the lapse, the insurer has no obligation to pay. However, in some cases, insurers fail to follow proper notification procedures or miscalculate the reinstatement process. These errors can be grounds for reinstating a claim.
6. Failure to Report Health or Lifestyle Changes
Some policies require the insured to update the insurer if there are major changes to health status, employment, or lifestyle—especially if the policy includes a conditional or flexible underwriting clause. Failure to report significant changes like starting to smoke, engaging in dangerous travel, or being diagnosed with a serious condition could trigger a denial based on breach of contract.
How Legal Help Makes a Difference in Denied Life Insurance Claims
Insurers often bank on beneficiaries being unaware of their rights—or too emotionally overwhelmed to fight back. But claim denial doesn’t have to be the end of the road. Life insurance attorneys specialize in investigating, appealing, and overturning wrongful denials. A lawyer can:
Review Policy Language and Application Details: Attorneys analyze the fine print, checking for ambiguous language, outdated exclusions, or misapplied rules.
Investigate the Denial Rationale: They examine the insurer’s stated reasons and gather medical records, correspondence, and payment history to challenge it.
File a Comprehensive Appeal: An appeal letter backed by legal analysis and supporting documentation gives you the best chance at a successful reversal.
Pursue Litigation if Needed: If the insurer refuses to act in good faith, your attorney can take the case to court to recover the full benefit—and possibly more.
Helping Policyholders and Beneficiaries Nationwide
Whether your policy is with Central Life Insurance, Banner Life, Jackson Life, Symetra, Voya, or another company, our legal team is ready to help. We have a national track record of overturning wrongful denials, settling high-value disputes, and ensuring that grieving families receive the benefits they were promised.
If you’ve experienced a claim denial due to non-disclosure, exclusions, contestability, lapse, or other reasons—don’t wait. The sooner we review your policy and claim documents, the better your chances of securing a full recovery.
Contact Our Life Insurance Attorneys Today
Our firm has helped clients recover millions in wrongfully denied life insurance benefits. With more than two decades of experience, we understand how to challenge complex denials and win. If you’ve lost a loved one and are struggling with a denied or delayed claim, contact us for a free consultation.