Life Insurance Lawyer Louisiana

"Life Insurance Lawyers Serving Louisiana: The Lassen Law Firm" Life insurance claims in Louisiana can present unique challenges, especially when dealing with denied benefits or delayed payouts. At The Lassen Law Firm, we are committed to helping individuals and families across the Pelican State secure the benefits they rightfully deserve. From New Orleans to Baton Rouge, Shreveport to Lafayette, and every community in between, our team is here to provide expert legal representation.

Life insurance provides crucial financial protection to families, especially in Louisiana, where residents often face the risks associated with hurricanes, floods, and other natural disasters. However, despite the importance of these policies, there are several reasons why a claim could be denied, even when policyholders believe they are fully covered. While it is well-known that a life insurance claim might be denied due to non-payment of premiums or misrepresentation of medical information, there are more nuanced and less commonly discussed reasons that could lead to a denial, such as beneficiary disputes and life insurance interpleader lawsuits. These issues, while often overlooked, can complicate an otherwise straightforward claim. Louisiana residents must be aware of these less common denial reasons, as well as how beneficiary disagreements can influence the payout process.

One significant but lesser-known reason for denial involves the concept of “incontestability,” which is a clause present in many life insurance policies. This provision states that after a policy has been in force for a certain period, usually two years, the insurance company cannot contest or void the policy based on misrepresentation or omission in the initial application. However, companies like AIG, MassMutual, and Nationwide sometimes invoke exceptions to this rule. For instance, if the insured passes away due to a cause that was directly related to fraud or intentional misrepresentation, the insurer may argue that the policy is void, even after the incontestability period. This issue may arise when an insured individual is found to have intentionally concealed dangerous lifestyle choices, such as smoking or engaging in high-risk activities, and this is later discovered after the death. Insurers like Transamerica, Symetra, and Lincoln Financial may seek to challenge the claim if they believe the death occurred due to these unreported actions, which might be considered “material misrepresentations.” This rare occurrence leaves beneficiaries with a complicated legal battle ahead if they hope to secure the life insurance payout.

Another less common reason for life insurance denial in Louisiana is the occurrence of what’s called a “lapse in coverage.” While many people understand that missing premium payments can result in a policy lapse, the specific circumstances surrounding this event can vary. For example, if an individual moves or changes their billing address and the insurance company is not notified, payment notices may not be received, leading to an unintentional lapse in coverage. Similarly, companies such as Prudential, Reliastar, and American General can deny a claim if the beneficiary fails to provide proof that the policyholder paid their premiums right up until the time of death. Even though the insured might have intended to maintain coverage, a missed payment that went unnoticed by either party could result in a denial. This issue becomes even more complicated if the insured passed away shortly after a missed payment or if the beneficiary did not keep track of the renewal dates or changes in payment details. In these cases, the grieving family might find themselves locked in a dispute over whether the policy was in force when the insured died.

One more rare but important reason for claim denial is what is referred to as the "criminal activity exclusion." Insurers such as Lincoln Heritage, USAA, and Banner Life might refuse to pay out a claim if the policyholder’s death resulted from engaging in criminal activity at the time of their death. This can include involvement in a robbery, assault, or other illegal activities. The reasoning behind this is based on the principle that life insurance should not benefit someone who deliberately engaged in high-risk or unlawful behavior. In Louisiana, where communities are often affected by crime, the risk of a life insurance claim being denied on these grounds is an issue that policyholders may overlook. Even in cases where the insured's death appears accidental or unrelated to criminal activity, insurers might still investigate whether the individual’s actions were part of a criminal event or if they had previously been involved in illegal activities that led to their death. This exclusion can be particularly devastating for beneficiaries, as it adds complexity to the claim process and often leads to lengthy disputes.

Another issue that can arise in Louisiana is when an insurer uses "lack of insurable interest" to deny a claim. This occurs when the beneficiary named in the policy does not have a legitimate financial interest in the life of the insured. This situation can arise when someone who is not related to the insured or does not have a close financial connection to them is listed as the beneficiary. Life insurance companies such as Globe Life, Foresters, and Protective Life may argue that the beneficiary has no right to receive the death benefit because they have not suffered a financial loss due to the insured's death. The “insurable interest” requirement is intended to prevent individuals from purchasing life insurance policies on strangers in order to profit from their death. This can become a gray area if the beneficiary is not immediately recognized as having an insurable interest, and the insurer may seek legal action to dispute the claim.

Additionally, beneficiary disputes can arise, particularly in cases where there is a disagreement over who should rightfully receive the death benefit. In Louisiana, it’s not uncommon for family members or other parties to challenge the validity of the named beneficiary, especially in the wake of a sudden death. For example, an ex-spouse might claim the right to the death benefit, arguing that the beneficiary designation on the policy is outdated and should be replaced with the ex-spouse’s name. In situations like these, even if the policyholder had verbally indicated their intention to change the beneficiary, the absence of proper documentation can lead to conflict. Some insurance companies, such as Reliance Standard, The Hartford, and Securian, have seen claims delayed or denied due to disputes among family members regarding the rightful beneficiary. These disputes often require legal intervention, and it can take months or even years for a final determination to be made, delaying the much-needed financial support for the surviving family members.

In these situations, insurance companies may file a life insurance "interpleader" lawsuit. This occurs when the insurer is unsure who the rightful beneficiary is and asks the court to determine who should receive the benefits. Companies like Lincoln Financial, MetLife, and Allianz are known for taking this route when they receive conflicting claims from multiple parties. These interpleader lawsuits can prolong the payout process and create an additional layer of stress for the family members already grieving their loss. While the company is technically not denying the claim, they are not providing a payout until the court resolves the dispute. In some instances, this legal procedure can delay the disbursement of funds for months, if not longer, leading to significant frustration for those relying on the payout to cover final expenses and other costs.

One of the more rare reasons for denial involves the insured’s activities during the application process. If the policyholder has intentionally misrepresented their lifestyle or occupation, it may lead to a refusal of the claim, especially if the insured was involved in dangerous activities that they failed to disclose. Life insurance providers like American Family, Erie, and Kemper may consider engaging in certain high-risk occupations—such as working in hazardous conditions or in dangerous industries like construction or oil drilling—as grounds for denying a claim if the individual did not fully disclose this during the underwriting process. Even if the insured’s death wasn’t directly linked to their job, life insurance companies may argue that their risky occupation contributed to the overall risk, and they could deny the claim based on non-disclosure.

Questions about life insurance claims in Louisiana

What do I do if my life insurance claim in Louisiana was denied?

You need to a top Louisiana life insurance lawyer to represent you.

What do I do If I was served with a life insurance interpleader lawsuit in Louisiana?

You don't want to jeopardize your case, so you'll need a top Louisiana life insurance attorney for representation.

What do I do if I have a life insurance beneficiary dispute in Louisiana?

Our top Louisiana life insurance law firm can represent you with respect to your beneficiary dispute.

Why would an accidental death & dismemberment life insurance claim in Louisiana be denied?

An AD&D life insurance claim is typically denied either because the death was caused by a medical event not an accident, or that there was alcohol involved which is typically an exclusion in the policy.

Can policy lapse be a reason for a denied life insurance claim in Louisiana?

Yes, but the lapse can be contested by our life insurance attorneys.

Is alleged misrepresentation on a life insurance application a reason for a denied life insurance claim in Louisiana?

Yes, but our life law firm can dispute the misrepresentation.

Can an alcohol exclusion be a reason for a denied life insurance claim in Louisiana?

Yes, but there are ways a life insurance lawyer can dispute this.

What do I do about a bad faith ERISA life insurance denial of death benefits in Louisiana?

As you only have one appeal, best to have our lawyers resolve it.

What should I do about a life insurance contestability period claim denial in Louisiana?

You should always get legal representation as any denial can be contested.

What do I do if I get a denial letter for my life insurance claim stating it was denied due to Louisiana state law?

There are many exceptions to denials based on Louisiana state law.

What are the worst life insurance companies in Louisiana for paying claims?

These Louisiana life insurance companies deny many claims: Kilpatrick Life Insurance in Alexandria, Union National Life Insurance in Alexandria, and Eagle American Life in Marksville.

2025 Louisiana Denied Life Insurance Claims

  • Farmers Life COVID-19 denial $202,000.00
  • SGLI beneficiary dispute won $411,000.00
  • American General coronavirus denied $50,000.00
  • VA Life felony exclusion resolved $405,200.00
  • Accidental Death & Dismemberment $803,000.00
  • Brighthouse Financial misrepresentation $20,000.00
  • National Life sickness exclusion resolved $75,000.00
  • Denied FEGLI claim that was resolved $138,000.00
  • AD&D claim denial due to drugs won $920,000.00
  • Mass shooting felony denial $300,000.00
  • Summit National power of attorney change $44,000.00
  • Primerica interpleader dispute lawsuit $306,200.00
  • Shooting denial of benefits $298,000.00
  • Continental nonpayment of premium $111,640.00
  • Shreveport accidental death and dismemberment $709,000.00
  • FEGLI appeal successful quick resolution $153,000.00
  • Bossier City delay due to medical issue $366,000.00
  • American General denial AD&D accidental death $415,000.00
  • Guardian self-inflicted injury exclusion $258,000.00
  • Standard sickness exclusion settlement $114,900.00
  • Denied SGLI claim quick resolution $405,300.00
  • Louisiana denied life insurance claim $873,000.00
  • SGLI competing beneficiaries action $400,000.00
  • OneAmerica denial of life benefits won $501,300.00
  • Baton Rouge dangerous activity exclusion $528,000.00
  • Denied FEGLI claim avoiding litigation $407,900.00
  • ERISA appeal life insurance benefits won $107,000.00
  • Monroe three exclusions overcome here $416,000.00
  • Denied AD&D claim felony exclusion $1,000,000.00
  • Lafayette ambiguous language won $791,000.00
  • Met life AD&D denied accidental death $512,790.00
  • John Hancock divorce beneficiary resolved $239,000.00
  • Stabbing death denial of benefits $304,600.00
  • FEGLI appeal success in less than a week $159,000.00
  • Liberty National exclusion for drug overdose $116,000.00
  • New Orleans material misrepresentation application $923,000.00
  • Union National autoerotic asphyxiation $152,000.00
  • Lake Charles life beneficiary dispute $1,000,000.00
  • Denied life insurance claim Louisiana $518,500.00
  • AETNA beneficiary dispute interpleader $220,350.00