Life Insurance Lawyer South Carolina

In South Carolina, beneficiaries sometimes find themselves in difficult situations when a life insurance claim is denied for reasons they did not anticipate. While most people are aware of the more common causes for denial, like missed premium payments or suicide exclusions, there are other, less common reasons that can result in claim rejection. Companies such as Prudential, Transamerica, and AIG, known for handling life insurance claims in the state, may deny claims based on less obvious provisions buried within the policy. Understanding these factors, as well as how beneficiary disputes and life insurance interpleader lawsuits can impact the claims process, can help policyholders and beneficiaries better navigate these challenges.

One reason for denial that might surprise beneficiaries is the issue of “incontestability clauses” within certain policies. Typically, life insurance policies have a period of contestability that lasts for two years from the date the policy is issued. During this time, insurance companies like Reliance Standard, MetLife, and USAA have the right to investigate and deny claims if they find that the insured provided false information or omitted key details during the application process. However, this contestability period does not necessarily end after two years. If the insurer later discovers that the policyholder misrepresented facts regarding their health, occupation, or lifestyle—such as a smoking habit or pre-existing medical conditions—companies can still deny claims even after the contestability period has expired. This is especially concerning for beneficiaries who may assume that after the two-year mark, their claims are safe from rejection.

Another often overlooked reason for denial in South Carolina relates to “accidental death exclusions.” Many life insurance policies provide an added rider for accidental death benefits, which offers additional coverage if the policyholder dies due to an accident. However, these policies sometimes include exclusions for specific types of accidents, such as those that occur while engaging in high-risk activities like skydiving, bungee jumping, or extreme sports. Insurers such as Lincoln Heritage, Foresters, and Nationwide have been known to deny claims under these circumstances, arguing that the policyholder’s death was a result of activities explicitly excluded in the policy. In some cases, this can be an unexpected and disheartening outcome for beneficiaries, particularly when the insured did not fully understand the scope of the exclusions.

South Carolina beneficiaries also need to be aware of how “policy lapses” can affect their claims. A policy lapse occurs when the insured stops paying premiums and the insurance company cancels the policy. While this may seem like an obvious reason for a claim denial, some insurers, like Globe Life and Erie, may be less transparent about when the coverage lapses, leaving beneficiaries in the dark. In certain cases, a grace period is provided after the due date for a premium payment, but if the policyholder dies during this period, the insurer may still deny the claim if they assert that the policy lapsed due to nonpayment. Worse still, in some situations, a policyholder may not even be aware that their policy has lapsed due to errors in the insurer’s billing or communication processes. The impact of such lapses can leave beneficiaries struggling to figure out what went wrong, even though they were led to believe the policy was in force.

An often-misunderstood issue arises from “moral hazard” clauses, which some life insurance policies include to protect the company against potential fraud. For instance, companies such as Symetra and Massachusetts Mutual may refuse to pay out if they believe the insured took actions that were risky or designed to expedite their death, such as extreme risk-taking behaviors in the final months of life. If there is any indication that the insured intentionally engaged in high-risk activities, like dangerous driving or substance abuse, insurers may claim that the policyholder effectively “killed themselves” by their actions, even if the death was accidental. Though these situations are relatively rare, they do occur and can cause significant heartache for beneficiaries who are left to pick up the pieces.

Beneficiary disputes are another frequent reason for delays or denials in life insurance claims in South Carolina. Disagreements between family members or other claimants over who is entitled to the death benefit can muddy the waters of an otherwise straightforward claim. This issue can arise if the insured failed to update their beneficiary designation after a major life change, such as a marriage, divorce, or birth of a child. In cases like these, insurers such as Securian and Principal may find themselves caught in the middle of conflicting claims from multiple parties. In South Carolina, like in other states, these disputes can become complicated when there is uncertainty about the insured’s intentions or if the beneficiary designation is ambiguous. If the insured named more than one beneficiary or if the designation was not updated after a divorce, the claim may be contested, leading to significant delays and frustration for the rightful beneficiaries.

When two or more parties claim entitlement to the death benefit, life insurance companies might file an interpleader lawsuit to resolve the dispute. This legal action allows the insurer, such as State Farm, Lincoln Financial, or Nationwide, to deposit the policy proceeds with the court, and then let a judge decide who is entitled to the money. While this may seem like a neutral approach, it can be a long and costly process for the beneficiaries involved. During the litigation process, the beneficiaries may face lengthy delays in receiving the death benefit, and in some cases, legal fees can drain the estate. Though it is supposed to provide a resolution, the interpleader process can feel like an additional hurdle for beneficiaries who simply want the financial support they were promised.

Questions about life insurance claims in South Carolina

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

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

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

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

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

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

Why would an accidental death & dismemberment life insurance claim in South Carolina 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 South Carolina?

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 South Carolina?

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

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

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 South Carolina?

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 South Carolina?

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 South Carolina state law?

There are many exceptions to denials based on South Carolina state law.

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

These South Carolina life insurance companies deny many claims: Colonial Life in Columbia SC, and Companion Life in Columbia.

2025 South Carolina Denied Life Insurance Claims

• Erie Life COVID-19 death denied $109,000.00
• Accidental Death & Dismemberment $528,000.00
• Liberty National coronavirus death $111,000.00
• SGLI denial change of beneficiary $40,000.00
• All American power of attorney change $12,000.00
• Industrial Life material misrepresentation $23,000.00
• Security Plan Life suicide exclusion $101,900.00
• AVMA Life interpleader lawsuit $156,000.00
• Royal Neighbors health record issue $109,000.00
• American Retirement Life illness exclusion $13,000.00
• AD&D claim denial due to intoxication $940,000.00
• Loyal American Life oxycontin denial $77,000.00
• Chase Life insurable interest issue $208,000.00

• Mass shooting South Carolina denied claim $112,000.00
• Stonebridge interpleader lawsuit won $301,900.00
• Genworth misstatement of age on application $218,000.00
• Primerica suicide and/or self-inflicted injury $315,000.00
• South Carolina denied life insurance claim $3,100,000.00
• HSBC application material misrepresentation $416,000.00
• Metropolitan policy not in force allegedly $105,000.00
• ERISA appeal written that was successful $189,000.00
• Denied life insurance claim South Carolina $2,2000,000.00
• Prudential drunk driving death alcohol exclusion $417,000.00
• SGLI issue change of beneficiary form $400,000.00
• South Carolina divorce and life insurance $550,000.00
• FEGLI appeal resolved within two weeks $168,000.00
• Bankers illegal activity or dangerous activity $107,000.00
• South Caroline bad faith life insurance claim $790,000.00
• Mass Mutual foreign death claim resolved $431,000.00
• Allstate autoerotic asphyxiation death $317,300.00