$165,200 Security Mutual Life Insurance Claim Dispute Won
Yes, life insurance companies often deny claims based on technicalities like misrepresentation, policy lapse, or alleged exclusions—but many of these denials can be reversed through legal action. Our firm recently secured $165,200 for a beneficiary after Security Mutual Life wrongfully denied their claim, demonstrating that even tough cases can be successfully challenged.
Victory Against Security Mutual: $165,200 Claim Recovered
Our client’s claim was denied after Security Mutual alleged that the policyholder failed to disclose a pre-existing medical condition. The death had no connection to the condition in question, yet the insurer insisted the policy was invalid due to "material misrepresentation." We launched an in-depth review of the application process, medical records, and underwriting notes. Our attorneys demonstrated that the alleged omission was immaterial and that the insured had answered all questions truthfully to the best of their knowledge. After presenting a legal brief outlining breach of contract and bad faith liability, the insurer reversed course and paid the full $165,200 benefit. This case is just one example of how legal intervention can overturn unfair denials.
Common Reasons Life Insurance Claims Are Denied
Life insurance claim denials often stem from factors that most families are completely unprepared for. Insurers rely on several common—and sometimes questionable—reasons to reject claims. Understanding these tactics can help beneficiaries take swift and informed action if a claim is refused.
Misrepresentation and Nondisclosure on the Application
One of the most frequent reasons for denial involves alleged misstatements or omissions on the original application. If the policyholder failed to disclose a medical diagnosis, smoking history, or high-risk activity, insurers may argue the policy was obtained fraudulently—even if those details had nothing to do with the cause of death. Insurers often scrutinize medical records after death in search of any inconsistency, no matter how minor. However, not all inaccuracies are material or legally sufficient to justify rescinding a policy. Courts typically require a direct connection between the omission and the risk assumed by the insurer, especially when the insured believed they answered truthfully.
Missed Premiums and Policy Lapses: Not Always Final
Another leading cause of denied claims is alleged policy lapse due to non-payment of premiums. Most life insurance policies include a 30- or 31-day grace period after a missed payment. If the insured dies after that window closes, insurers frequently deny the claim. But many denials based on lapse are flawed. Automatic payments that fail due to bank errors, address changes that lead to missed notices, or the insurer’s failure to send required lapse warnings can all open the door to legal challenges. We've reversed many denial letters simply by uncovering a violation of the insurer’s statutory obligations.
Excluded Causes of Death and Vague Policy Language
Insurers may also deny claims if the death occurred due to a cause excluded in the policy. These can include suicide within two years of policy issuance, death during the commission of a felony, or participation in dangerous activities such as skydiving or motorcycle racing. But exclusion clauses are often written vaguely, and many policies fail to clearly define what constitutes a “high-risk” activity. If the policy language is ambiguous, the law typically requires that the ambiguity be interpreted in favor of the beneficiary. Our attorneys use this legal principle to fight back when insurers deny claims based on questionable exclusions.
Fraud, Suspicion, and Delay Tactics
When the cause of death is unclear or under investigation, insurers often delay payment pending the outcome of a police or coroner’s inquiry. In some cases, they allege fraud without offering concrete evidence. Families are left in limbo while the insurer “reviews” the file—sometimes for months. While companies are allowed to investigate, they cannot unreasonably delay payment or use suspicion alone as a reason to deny a claim. We push back on these tactics by requesting all internal claim notes, holding the insurer to time limits under state law, and demanding justification for any denial or delay.
Why Legal Help Is Crucial When Facing Denials
If you’ve received a denial letter, don’t assume the insurer is right. Life insurance companies count on grieving beneficiaries to give up. But our law firm specializes in identifying weaknesses in denial justifications and using legal leverage to recover full benefits. Our attorneys:
Analyze policy terms for vague exclusions
Review underwriting files for signs of bad faith
Investigate payment history and insurer notices for compliance issues
Leverage state and federal law to enforce policyholder rights
We’ve helped clients recover benefits in cases involving Security Mutual Life, American National Life, Transamerica, Minnesota Mutual, and many others. Whether your claim was denied due to misrepresentation, lapse, exclusion, or suspicion, we know how to challenge the decision and win.
Contact Us to Challenge a Denied Life Insurance Claim
Our law firm has resolved hundreds of denied claims for families across the country. If your claim has been rejected, reach out today for a free consultation. We’ll assess the denial, explain your options, and craft a plan to pursue the benefits your loved one intended for you to receive.
FAQ: Security Mutual Life Insurance Claim Denials
Why would Security Mutual deny a life insurance claim? Common reasons include alleged misrepresentations, missed payments, exclusions for certain causes of death, or suspicion surrounding the death. However, many of these denials can be legally challenged.
What if the insurer says the application had an error? Not every mistake voids a policy. If the error wasn’t intentional or didn’t materially impact the insurer’s risk, the policy may still be enforceable. Courts look at context and causation.
Can a policy lapse be reversed? Yes, especially if the insurer failed to send a required lapse notice or if the lapse was due to an automatic payment issue. Legal review of the lapse process often uncovers violations.
How long can an insurer delay a claim for investigation? Insurers must act within a reasonable timeframe. If they delay excessively without justification, they may be acting in bad faith—something our firm regularly addresses in disputes.
Is suicide always excluded under life insurance? Most policies exclude suicide only during the first two years. After that, even a suicide must be covered. If your claim is denied on this basis, it’s essential to examine the timeline and policy language closely.