Denied life insurance claims are more than just paperwork problems—they are deeply painful and financially devastating events for families who were counting on the benefits. When an insurer refuses to pay, the result is often confusion, stress, and hardship during an already difficult time. At LifeInsuranceAttorney.com, we specialize in challenging denied life insurance claims and beneficiary disputes—and we win. Our legal team has successfully resolved claims from major insurers such as Reliance Standard, Liberty Mutual, Assurity Life, USAA Life, National Life Group, and many more.
Understanding why a claim was denied is the first step toward fighting back. These denials can result from everything from simple clerical errors to complex legal issues involving fraud, exclusions, or lapsed coverage.
1. Non-Disclosure and Misrepresentation During the Application
Perhaps the most common cause of a denied claim is the failure to disclose relevant information at the time the policy was purchased. Life insurance applications require honesty about medical history, lifestyle risks, occupation, and more. If an insurer later discovers that a serious condition—such as heart disease or diabetes—was omitted, or that the applicant understated the risk of their job or hobbies, they may argue that the policy would never have been issued or that the terms would have been significantly different.
Inaccuracies involving basic data like date of birth, social security number, or even address history can also cause problems. Some insurers treat even unintentional errors as material misrepresentations, especially if the claim is filed within the policy’s contestability period—usually the first two years after issuance—when the insurer can void the policy based on inconsistencies.
2. Policy Exclusions That Limit Coverage
Every life insurance policy contains exclusions—scenarios under which no benefit will be paid. These exclusions vary widely but commonly include:
Suicide within the first two years
Deaths involving illegal activities
Self-inflicted harm, such as autoerotic asphyxiation
Participation in hazardous sports like scuba diving or skydiving
Deaths occurring in high-risk occupations, such as construction or firefighting, if not properly disclosed
Exclusion clauses are often hidden in dense policy language. When an insurer denies a claim citing an exclusion, many beneficiaries aren’t even aware that such a clause existed. Our attorneys carefully analyze policy language and challenge insurers when they misapply or stretch these exclusions beyond what the policy allows.
3. Fraud and Allegations of Deceptive Behavior
Insurance companies take allegations of fraud seriously. If they believe that the policyholder falsified information, forged documents, or concealed relevant facts, they may cancel the policy and deny any claim. However, insurers also sometimes use the term “fraud” broadly—flagging discrepancies that don’t meet the legal standard for intentional deception.
We’ve successfully handled numerous cases where insurers accused either the insured or a beneficiary of fraud, only to have the denial overturned when the true facts were uncovered. From questions about forged signatures to false assumptions about intent, we work aggressively to clear our clients’ names and recover the money they’re owed.
4. Deaths Abroad and Claims Involving Foreign Documentation
When the insured dies while traveling or living overseas, the claim process becomes far more complex. Insurers will demand proof of death, official documentation, and verification from foreign governments or consulates. If these documents are delayed, incomplete, or viewed as unreliable, the insurer may deny the claim entirely. These situations are particularly sensitive in regions with unstable governments or limited infrastructure.
We’ve resolved numerous international claims where insurers tried to avoid payment by citing vague documentation requirements. Our attorneys work with local authorities and international agencies to collect and validate the necessary evidence.
5. Lapsed Policies Due to Non-Payment
A significant number of claims are denied simply because the policy lapsed. Life insurance coverage requires consistent premium payments. If the policyholder missed payments or allowed the grace period to expire, the policy may no longer be in force at the time of death. In some cases, the lapse occurred because of an overlooked notice or banking error. In others, the policyholder was incapacitated and couldn’t manage their finances.
While insurers are within their rights to deny claims on lapsed policies, our attorneys investigate whether proper notice was given, whether the lapse was valid under state law, and whether reinstatement options were ignored. We’ve reinstated policies and recovered benefits even after claims were initially denied.
6. Beneficiary Disputes and Revocation Statutes
Conflicts among beneficiaries are another common roadblock. Disputes may arise when:
More than one person claims to be the rightful beneficiary
The beneficiary listed on the policy differs from the one named in a will
A new beneficiary is added shortly before death, raising suspicion of undue influence
The beneficiary is an ex-spouse, and state automatic revocation statutes apply
In over half of U.S. states, laws automatically revoke an ex-spouse as the beneficiary after divorce unless the policyholder reaffirms the designation. These laws create confusion and legal conflict. We represent clients in these beneficiary disputes and in interpleader lawsuits—cases where the insurer deposits the policy funds into court and lets the court decide who should receive them.
7. Substance Use and Deaths Tied to Drug or Alcohol Use
While overdose and substance abuse are sensitive topics, many insurers have specific exclusions tied to drug-related deaths—particularly if the policyholder had a known history of addiction or failed to disclose substance use on the application. Claims are closely scrutinized when toxicology reports show controlled substances, even if the death was accidental.
We investigate whether the exclusion was properly applied and whether the insured was taking medication as prescribed. In some cases, the death may not be tied to substance use at all, and the insurer’s assumption is unfounded.
8. Administrative Errors and Incomplete Claim Submissions
Even something as simple as submitting incomplete paperwork can derail a valid claim. Insurers typically require a death certificate, proof of identity, the policy itself, and various claim forms. If a document is missing—or even partially filled out—the claim can be delayed or denied. These issues are particularly common in complex cases, such as foreign deaths or policies with multiple beneficiaries.
We assist clients in compiling and submitting the proper documentation, responding to insurer requests, and challenging denials based on procedural errors.
We Fight Denied Claims—and Win
Whether the claim was denied due to misrepresentation, policy lapse, exclusion, fraud allegations, or beneficiary conflict, we know how to challenge the insurer’s decision. Our firm has handled denied claims from major life insurance companies including Reliance Standard, USAA, National Life Group, Brighthouse, Assurity Life, and more.
Don’t accept a denied life insurance claim as the final word. Fill out our contact form for the fastest response—and let our legal team fight for the benefits your family deserves. If you have an Oregon life insurance policy dispute we are here.
FAQ About Denied Life Insurance Claims
Why do life insurance claims get denied?
Common reasons include non-disclosure of medical conditions, missed premium payments, policy exclusions (e.g., suicide, illegal acts), beneficiary disputes, and suspected fraud.
What is a contestability period?
It's typically a two-year period after policy issuance during which insurers can investigate the application for misstatements or omissions. Many claims are denied during this time.
What if my loved one’s policy lapsed?
Even if the policy lapsed, you may still have options. We evaluate whether proper notice was given or if reinstatement rights were violated.
Can a claim be denied if the death occurred overseas?
Yes, but denials often stem from documentation issues. We help families gather and validate the necessary foreign records to support their claim.
What happens when multiple people claim to be the beneficiary?
The insurer may file an interpleader lawsuit and deposit the funds with the court. We represent clients in these legal disputes to determine who rightfully receives the payout.
Can an ex-spouse still collect life insurance after divorce?
Not in many states. Automatic revocation statutes often remove an ex-spouse unless the policyholder reaffirms them post-divorce.
Does substance use automatically void a claim?
No. Each case depends on the policy terms, cause of death, and the insured’s medical history. We’ve overturned denials tied to drug or alcohol use.
Do I need a lawyer to fight a denied claim?
Yes. Insurance companies have entire legal departments dedicated to denying claims. You need an experienced life insurance attorney to level the playing field.
How long does it take to resolve a denied claim?
Some appeals are resolved in weeks, while others—especially disputes or interpleader cases—can take months. Prompt legal action is key.
Which insurers deny life insurance claims?
We’ve challenged claim denials from many insurers, including AIG, USAA, Brighthouse, Assurity, Ethos, Ladder Life, Bestow, and more.