$119,000 Everlake Life Insurance Claim Denial Successfully Resolved
We are pleased to announce the successful recovery of a $119,000 denied life insurance claim from Everlake Life Insurance. The denial was based on policy lapse due to non-payment—a common issue that affects thousands of policyholders each year. Our legal team fought back, identified the insurer’s procedural errors, and secured the full benefit for the grieving family. At LifeInsuranceAttorney.com, we fight delayed and denied life insurance claims, as well as beneficiary disputes and interpleader lawsuits, across all major insurers.
Why Policies Lapse and What It Means for Life Insurance Claims
One of the most devastating reasons for a denied life insurance claim is policy lapse. A lapse occurs when the policyholder fails to pay premiums and does not take action within the specified grace period—typically 30 or 31 days. After the grace period ends, the policy is terminated, and the insurer may no longer be obligated to pay the death benefit.
However, policy lapse claims are often highly contestable, especially when they result from:
Miscommunication or clerical errors
Bank or payment processing failures
Health-related memory or cognitive issues
Lack of proper notice from the insurer
Mail delivery issues or address update problems
Case Study: Jorge’s Denied Claim After 20 Years of Premiums
Jorge, a 48-year-old father who had maintained a life insurance policy for over two decades, missed a single premium payment during a difficult financial period. He assumed he could catch up the next month, unaware of how stringent Everlake’s reinstatement rules were. One month later, Jorge passed away from a sudden heart attack. His family’s claim was denied—despite his long history of responsible payment—because the policy had technically lapsed. Our legal team argued that Jorge was not properly notified, and we successfully recovered the full $119,000 benefit.
Other Real-Life Examples of Wrongfully Denied Lapse Claims
Susan’s Automatic Payment Error
Susan, a 25-year-old single mother, had her life insurance set to auto-pay from her bank account. Due to a bank error, a payment was declined, and she was never informed of the problem. She tragically died in a car accident a few months later. Her sister, the named beneficiary, was stunned to receive a denial letter. Our attorneys uncovered communication failures by the insurer and successfully challenged the denial.
Robert’s Memory Loss and Missed Payment
At age 66, Robert began experiencing cognitive decline and inadvertently missed a premium payment. His family was unaware that the policy had lapsed. When Robert passed away six months later, they filed a claim only to be denied. We argued that the insurer had a duty to ensure continued communication with policyholders suffering from age-related impairments and achieved a favorable settlement.
Linda’s Job Loss and Financial Struggles
After losing her job, Linda missed two premium payments while trying to stay financially afloat. When she died from an illness shortly afterward, her family learned the policy had been canceled. We showed that the insurer failed to provide adequate lapse notices and pursued legal remedies to recover the benefit.
Mark’s Lost Check in the Mail
Mark preferred paying premiums by check. One month, his payment never arrived due to postal delays. By the time he realized the issue, his grace period had ended. A few months later, he passed away. His claim was denied due to policy lapse. We successfully argued that the insurer should have allowed a longer window or offered alternative solutions.
Rachel’s Address Change Mishap
Rachel moved to another state and updated her billing address online. However, due to a clerical error, her invoices continued going to her old address. Unaware that she had missed multiple payments, her policy was terminated. When she died in a car accident, her husband was denied the death benefit. We fought the denial by proving the insurer’s internal records were inconsistent and poorly maintained.
How We Fight Lapsed Life Insurance Denials
Our legal team takes a multi-pronged approach to challenging denials based on policy lapse:
We obtain a complete payment history and policy records
We examine whether proper notices were sent in compliance with state law
We review whether the insurer followed its own procedures
We look for bank errors, mail delays, or technical glitches
We investigate whether the insured was mentally or physically impaired when the lapse occurred
Our goal is to prove that the policy should not have lapsed, or that the insurer failed to act in good faith. In many cases, we recover partial or full payouts even after an initial denial.
FAQ About Denied Life Insurance Claims Due to Policy Lapse
What is a policy lapse in life insurance?
A lapse occurs when premium payments are not made and the grace period expires. Once lapsed, the insurer may deny any claims related to the policy.
How long is the grace period?
Most policies provide a 30- or 31-day grace period after the due date. If the insured dies during this period, the claim is usually still valid.
Can I fight a denial due to non-payment?
Yes. If notice was not properly given, or if the lapse resulted from a bank error, health condition, or mail issue, we may be able to challenge the denial.
Is reinstatement possible after a lapse?
In some cases, yes—if the insured applies for reinstatement and submits missed premiums and health evidence. However, reinstatement must occur before death.
What if the insured had memory issues or cognitive decline?
We can argue that the insurer should have accommodated these circumstances and that the lapse was not due to neglect or intent.
Can auto-pay errors justify a policy lapse?
Insurers are responsible for promptly notifying policyholders if an auto-payment fails. If they fail to do so, the lapse may be challenged.
Does mailing a check count as proof of payment?
Not necessarily—but if a check is lost in the mail, and no proper notice was given, we can often argue that the lapse was improperly processed.
What if I moved and didn’t get the notices?
If you updated your address and the insurer failed to make the change, they may be held liable for improper notice and denied claims can be reversed.
Do you handle Everlake claims only?
No. We handle lapsed policy disputes and claim denials for all major insurers including Transamerica, Prudential, AIG, Globe, John Hancock, and more.
How quickly should I act after a denial?
Immediately. There are strict appeal deadlines and statute of limitations. Contacting a life insurance lawyer early is key to recovering the benefit.