$101,000 Denied Ladder Life Insurance Claim Resolved: Understanding Contestability Period Denials
We are pleased to announce the successful resolution of a $101,000 denied Ladder Life insurance claim. The denial was rooted in issues tied to the two-year contestability period—a common provision in most life insurance policies that can result in serious complications for beneficiaries. At LifeInsuranceAttorney.com, our life insurance lawyers specialize in overturning denials and securing payouts for grieving families, even when large insurers attempt to avoid their obligations during this critical window.
Whether the denial comes from Ladder Life, Pacific Life, Northwestern Mutual, State Farm, or any other major insurer, we have the experience and legal strategies to fight back and win.
What Is the Contestability Period and Why Does It Lead to Denials?
The contestability period is typically the first two years after a life insurance policy goes into effect. If the policyholder passes away during this time, the insurance company has the right to investigate the claim more extensively. This includes reviewing the original application, ordering medical records, analyzing prescription history, and even interviewing witnesses to determine whether any misrepresentations were made during the application process.
While this clause is designed to deter fraud, it often results in families facing unexpected delays or outright claim denials—especially when the insurer believes that even a minor discrepancy justifies withholding the death benefit. These investigations often target:
Pre-existing medical conditions that were not fully disclosed
Lifestyle factors such as smoking, drinking, or drug use
Inaccurate weight or height information
Past surgeries or medical diagnoses, even if considered minor
Occupation changes or risky hobbies like skydiving or racing
We’ve fought and won these types of denials not just against Ladder Life, but also against Protective Life, Lincoln Financial, Corebridge, John Hancock, and many more.
How Misrepresentation Is Used to Justify Denials
One of the most frequent reasons for denial during the contestability period is alleged misrepresentation. Life insurance policies are contracts based on good faith—meaning the insurer expects full honesty when the policyholder completes the application. But even if an omission was unintentional or immaterial to the cause of death, the insurance company may still argue that it voids the policy.
For example, we’ve handled cases where policyholders forgot to mention prior heart conditions or failed to disclose a single ER visit. In one case, an individual died of unrelated causes, but because a minor heart issue was omitted, the insurer refused to pay. These claims have been wrongfully denied by Mutual of Omaha, Guardian Life, AARP Life, Mass Mutual, and others. We challenged those denials and won.
Honest Mistakes and Human Error Still Lead to Delays or Denials
Even the most well-meaning applicant can make mistakes on a life insurance application. Someone might underestimate their weight, forget about a minor outpatient procedure from years ago, or misunderstand a question about mental health. Yet insurers are quick to use such errors as grounds to delay or deny payment.
We’ve seen denials based on:
Infrequent or social smoking not disclosed
Old prescription medications that implied a diagnosis
Misstated family medical history
Incomplete information about occasional alcohol consumption
These discrepancies are often unrelated to the cause of death, but insurers use them anyway. Our attorneys challenge these tactics with legal arguments, medical documentation, and, when necessary, expert opinions. We’ve done so successfully against Hartford Life, American Family Life, Primerica, Aetna Life, and more.
Cause of Death Scrutiny: Suicide Clauses and High-Risk Activity
The contestability period isn’t just about what was disclosed in the application—it’s also about how the insured died. If the cause of death involves suicide, insurers may invoke the suicide clause, which typically limits benefits to a return of premiums if the death occurred within the first two years.
These cases are emotionally complex and legally difficult. Families may be unaware that such clauses exist, and insurers may misapply the clause in situations where the cause of death is unclear or improperly classified. Our attorneys dig into the autopsy reports, toxicology results, and coroner findings to build a clear picture of what actually happened. We’ve defended families in high-stakes claims involving suspicious deaths, drug interactions, and alleged suicide, and we’ve won.
Beyond suicide, deaths that occur during dangerous activities—whether reported or not—may trigger enhanced scrutiny. Insurers may claim the policyholder was engaged in conduct that voided the policy, even if the activity was not disclosed or was considered a routine part of life.
How Our Lawyers Fight and Win Denials During the Contestability Period
Our approach is comprehensive. We begin by reviewing the denial letter and the policy in detail. Then we gather all relevant documentation, including the death certificate, medical records, prescription history, and application materials. We prepare a legal brief challenging the basis for denial and submit an appeal letter supported by factual and legal arguments.
We highlight key points such as:
The immateriality of the alleged misrepresentation
The lack of causal connection between the omitted information and the cause of death
Ambiguities in the policy language that must be interpreted in the claimant’s favor
The absence of evidence that any misstatement was intentional
Our goal is to resolve the case without litigation—but if necessary, we’re prepared to take the insurer to court. We’ve recovered denied benefits from insurers large and small, including AIG, Banner Life, Ethos, Brighthouse Financial, and Lumico Life.
FAQ About Contestability Period Denials
What is the contestability period in life insurance?
It’s a two-year window after the policy begins during which insurers can review claims closely and deny them if they find misrepresentations in the application.
Can a claim be denied for small mistakes?
Yes. Even minor, unintentional errors—like forgetting a medication or misreporting weight—can be used as grounds for denial during the contestability period.
What if the misrepresentation didn’t cause the death?
That can be a strong basis for appeal. If the omitted information is unrelated to the cause of death, the insurer may be misapplying the contestability clause.
Can suicide void a life insurance policy?
Only if the suicide occurs within the first two years and the policy includes a suicide exclusion. After that period, most policies pay out as normal.
What documents are reviewed during the contestability period?
Insurers look at the original application, medical records, prescription history, death certificate, and sometimes coroner or autopsy reports.
Can I fight a denied claim during the contestability period?
Absolutely. Our law firm specializes in overturning contestability period denials through appeals and legal action.
Is a denial final?
No. A denial letter is not the last word. With the right legal help, denials can be appealed and overturned.
How long do I have to file an appeal?
Time limits vary by policy and state law, but it's important to act quickly. Contact a lawyer immediately to preserve your rights.
Do you handle denied claims from Ladder Life and other major insurers?
Yes. We handle denials from Ladder Life, Protective Life, John Hancock, Northwestern Mutual, and dozens more.
What if the policy was purchased online or through a digital insurer?
Digital life insurance companies still follow the same legal rules. We’ve successfully challenged denials from tech-based insurers and won.