Denied Life Insurance Claim Due to a New Policy? We Can Help
One of the most frustrating situations a family can face is having a life insurance claim denied shortly after the policyholder’s death—especially when the policy was recently issued. While it may seem unjust, these denials often stem from what's known as the contestability period, a clause that allows insurers to closely scrutinize claims made within the first one to two years of policy issuance. At LifeInsuranceAttorney.com, our top-rated lawyers fight all denied life insurance claims, whether based on new policy disputes, application errors, or alleged misrepresentations. We’ve recently handled and won cases against Banner Life, Fidelity Life, Protective Life, AAA Life, USAA Life, Gerber Life, and more.
Understanding the Contestability Period in New Policies
Most life insurance contracts include a contestability clause that gives the insurance company the right to investigate the application and medical history of the deceased if death occurs soon after the policy is issued. The clause is designed to prevent fraud and ensure that the coverage wasn’t obtained under false pretenses. Even if the cause of death has nothing to do with what was omitted from the application, insurers often seize the opportunity to void the policy based on alleged misrepresentation.
This is especially troubling for beneficiaries who believe they are covered, only to be told months into mourning that the policy is invalid. Fortunately, not all denials are justified, and legal intervention can make all the difference.
Why Claims on New Life Insurance Policies Get Denied
Insurance companies will often deny claims filed within the contestability period for the following reasons:
Failure to disclose medical conditions, including symptoms that hadn’t yet led to a diagnosis
Undisclosed high-risk behaviors, such as drug use, DUIs, or dangerous hobbies
Inaccurate or incomplete personal or financial information
Suspicion of fraud based on timing or circumstance
Even if the omission seems minor—or completely unrelated to the cause of death—insurers may argue that the information would have influenced their decision to approve or rate the policy.
Real Examples of Denied Claims After New Policy Issuance
Jorgen’s Case: Undisclosed Heart Concerns
Jorgen, 58, applied for a $500,000 life insurance policy and was approved. He did not disclose recent chest pains or the fact that he had undergone testing for heart issues. Just one month after his policy was activated, he suffered a fatal heart attack. The insurer reviewed his medical records, found that he had visited a cardiologist before applying, and denied the claim. His family was stunned. While the omission was serious, they believed it was due to Jorgen not realizing the importance of reporting it. We’ve seen many similar denials reversed by demonstrating that the applicant had no formal diagnosis at the time of application or that the insurer waived the right to contest.
Josephine’s Case: DUI History and an Unrelated Accident
Josephine, 42, was killed in a car crash two months after her policy was issued. Her husband assumed the claim would be paid, as the death was clearly accidental. But the insurer uncovered a history of DUI convictions Josephine hadn’t disclosed. Although alcohol was not involved in her fatal crash, the insurer still denied the claim for misrepresenting her risk profile. This type of denial is legally questionable, especially when the undisclosed factor had no connection to the death.
Kai’s Case: Suspicion Over Recent Medical Visits
Kai, 65, applied for a life insurance policy and died from cancer within a few months. During the claim review, the insurer found that Kai had visited a doctor shortly before applying due to unexplained weight loss and fatigue. They argued that he likely suspected something was wrong and failed to disclose it, constituting material misrepresentation. His wife Constance was left with nothing. We see cases like this frequently and often argue that symptoms without a diagnosis should not be used to void a policy—especially if the insurer failed to ask the right questions.
How Our Lawyers Fight New Policy Denials
When a claim is denied based on a new policy and contestability period, our legal team works quickly to:
Obtain the full underwriting file
Review medical records, application documents, and correspondence
Challenge whether the omission was truly material
Argue that any error was unintentional or immaterial
Expose bad faith denial tactics and press for full payout or settlement
Many insurance companies deny first and ask questions later, assuming families won’t fight back. That’s where we come in.
FAQ About Denied Life Insurance Claims on New Policies
What is a contestability period?
It’s a period, usually the first two years of a life insurance policy, during which the insurer can investigate and potentially deny a claim due to misstatements or omissions on the application.
Can a life insurance company deny a claim during the contestability period?
Yes, but only if they can prove that the insured misrepresented or omitted information that was material to the issuance of the policy.
Does the cause of death matter during the contestability period?
Sometimes. Insurers may deny a claim even if the cause of death is unrelated to the misrepresented condition, as long as the misrepresentation was “material.”
What counts as material misrepresentation?
Any omission or false statement that could have impacted the insurer’s decision to approve the policy or set the premium rate.
Can symptoms without a diagnosis be used to deny a claim?
Insurers often try—but we challenge these denials if the insured didn’t knowingly conceal a diagnosable condition.
What if the insured didn't know they had a condition?
That’s a common defense. If there was no formal diagnosis or if the insured genuinely didn’t know the condition was serious, we can argue there was no intent to deceive.
Can the insurer deny a claim because of old legal issues or DUIs?
Only if the application asked about it. If the insured wasn’t directly asked, or the record was old or unrelated, the denial may be overturned.
How do I know if a denial is valid?
Contact a life insurance lawyer. We review policies, applications, and denial letters to determine if the claim should be challenged.
Do you only handle new policy denials?
No. We handle all types of denied life insurance claims—new and old—as well as delayed payments, interpleader lawsuits, and beneficiary disputes.
Which companies have denied new policy claims?
We’ve handled cases against Banner Life, Fidelity Life, Protective Life, AAA Life, USAA Life, Gerber Life, Transamerica, Globe, and more.