We are happy to announce a successful resolution of a Sun Life Insurance claim dispute. While policyholders often assume their insurance is secure as long as they make timely premium payments, administrative errors can quietly undermine their policy’s validity. Some of the most common mistakes include missing or incorrect information on the application, outdated beneficiary details, lapsed policies due to payment processing errors, and improper record-keeping by the insurance provider. Even a minor inconsistency in the insured person’s name, birthdate, or social security number can lead to unnecessary scrutiny and, in some cases, claim rejection. Our top life insurance law firm handles both delayed and denied life insurance claims. Recent wins have been against: Guardian Life; Protective Life; Lincoln Financial; and Globe Life. One of the most frequent administrative errors occurs when an insured individual forgets to update their policy after a life event such as marriage, divorce, or the birth of a child. If an ex-spouse remains listed as the beneficiary, but the insured intended their new spouse or children to receive the payout, the claim can become entangled in legal disputes. Similarly, if an employer-sponsored policy is mishandled due to payroll or HR errors, employees may unknowingly lose coverage, only for their families to discover the issue too late. We have won claims against: Northwestern Mutual; Pacific Life; Nationwide; Mutual of Omaha; and more.
While some administrative errors result from honest mistakes, others are exploited by insurance companies as loopholes to avoid payouts. Insurance providers have a vested interest in minimizing claim payments, and one way they accomplish this is by rigorously examining policies for even the smallest technical discrepancies. If an application contains outdated information or a minor clerical error, insurers may seize the opportunity to argue that the policy is invalid, shifting the burden onto beneficiaries to prove otherwise. We have litigated denied life insurance claims against: State Farm; Mass Mutual; Gerber; Connecticut Mutual Life – Mass Mutual; and more. For instance, if an insured individual made an unintentional mistake on their application such as misreporting their weight or forgetting to disclose an old medical condition the insurance company might classify it as a “material misrepresentation.” Even if the error was irrelevant to the cause of death, the insurer could use it as justification for denial. Moreover, insurers often rely on strict policy lapse rules, meaning if a payment was accidentally missed due to a bank error or an auto-payment failure, the policyholder could lose coverage without realizing it. When a life insurance claim is denied due to administrative errors, the financial consequences for beneficiaries can be severe. Many families rely on life insurance to cover funeral expenses, outstanding debts, and daily living costs. A sudden denial can leave them scrambling for solutions at the worst possible time. What makes this situation even more infuriating is that these denials often feel unjust especially when the insured did everything in their power to maintain coverage.
Consider a scenario where a policyholder passes away unexpectedly, and their grieving spouse submits a claim, only to be told that the policy was canceled due to a missed premium payment that the insurer failed to notify them about. Or worse, a claim might be denied because a minor discrepancy in the insured’s medical records led the insurance company to argue that they misrepresented their health. In both cases, beneficiaries are left without the financial support they were counting on, forcing them into costly legal battles or prolonged appeals to fight for what is rightfully theirs.
Contact our top life insurance lawyers for a free consultation today.