We are happy to have resolved a denied Ladder Life insurance claim.
One of the most significant hurdles beneficiaries may face is the two-year contestability period, a clause that can lead to delays or even outright denials of claims. While this provision is standard in most life insurance contracts, its implications can be complex and, in some cases, frustrating for those expecting timely financial support. Luckily, our top life insurance lawyers fight delayed and denied claims whether it is: Ladder Life; Pacific Life; Northwestern Mutual; State Farm; and more.
The two-year contestability period allows life insurance companies to review and investigate claims more thoroughly when a policyholder dies within the first two years of coverage. During this time, insurers have the right to scrutinize the application and medical history of the deceased to ensure that no material misrepresentations or omissions were made at the time of purchase. While the purpose of this clause is to prevent fraud and ensure fairness in the industry, it can also create significant challenges for beneficiaries who may already be dealing with the emotional and financial burden of losing a loved one. Even minor inaccuracies or unintentional errors on an application such as failing to disclose a previous medical condition, smoking history, or certain lifestyle habits can give the insurer grounds to deny the claim or, at the very least, delay the payout while further investigations take place. Our life insurance law firm fights these claims against life insurance companies such as: Protective Life; Lincoln Financial; Corebridge; John Hancock; and more.
One of the most common reasons for claim denial during the contestability period is misrepresentation. Insurance companies operate on the principle of good faith, meaning that policyholders are expected to provide truthful and complete information when applying for coverage. If an insurer discovers that the deceased withheld information whether intentional or not it can result in the claim being denied. We can help if denied by: Mutual of Omaha; Guardian Life; AARP Life; Mass Mutal Life; and more. If an insured failed to mention a pre-existing heart condition and subsequently passed away, the insurance company may argue that it would not have issued the policy (or would have done so under different terms) had it known the full extent of the applicant's health status. Similarly, lifestyle choices such as drug use, risky hobbies, or even a change in occupation that was not reported could all be grounds for further review or outright rejection of the claim. Our life insurance lawyers can help whether you were denied by: Hartford Life; American Family Life; Primerica Life; Aetna Life; and more. Another critical aspect of the contestability period is that even honest mistakes or unintentional omissions can lead to complications. Many people do not deliberately misrepresent their health or lifestyle when applying for insurance, but human error, misunderstanding of medical terminology, or simple forgetfulness can still create problems. For instance, if a policyholder inaccurately reported their weight, overlooked a previous minor surgery, or failed to mention an infrequent smoking habit, an insurance company could use these discrepancies to challenge the validity of the policy.
Beyond misrepresentation, insurance companies may also investigate the cause of death during the contestability period more rigorously than they would otherwise. If the death appears suspicious or is related to high-risk activities, the insurer may conduct an extensive review to determine if the policyholder’s actions invalidated the terms of the policy. Suicide clauses, for example, are commonly included in life insurance policies and typically state that if the policyholder dies by suicide within the first two years, the insurer is only required to refund the premiums paid rather than provide the full death benefit. While these clauses are meant to prevent people from taking out large policies with the intent of committing suicide shortly thereafter, they can still create distress for beneficiaries who may be unaware of the fine print in their loved one's policy. For those who find themselves facing a delayed or denied claim due to the contestability period, there are options to contest the insurer’s decision. Our life insurance lawyers will lay out the ways we can fight these claims.