The 7 Most Common Mistakes Beneficiaries Make (and How to Avoid Them)
Losing someone you love is overwhelming. The last thing you should have to worry about is making a mistake that could delay — or even cost you — the life insurance benefits your loved one intended for you.
As a life insurance attorney, I see the same beneficiary mistakes over and over, and the good news is that nearly all of them are preventable.
If you avoid these pitfalls early, you dramatically increase your chances of being paid quickly and avoiding a life insurance dispute.
Below are the 7 most common mistakes beneficiaries make — and how you can avoid them.
1. Not Reading the Denial or Request Letters Carefully
Many beneficiaries gloss over the insurer’s letters because they feel confusing or overwhelming. But buried inside these letters are:
Important deadlines
Required documents
The insurer’s stated reason for denial
Policy sections they claim support their decision
Why this matters:
Missing or misunderstanding a single detail can completely derail your claim.
How to avoid it:
Highlight anything unclear, set reminders for deadlines, and get a legal opinion before responding.
2. Failing to Request the FULL Claim File
One of the biggest mistakes beneficiaries make is assuming the insurer has told them everything.
They haven’t.
You have the right — especially under ERISA — to request:
Internal notes
Call logs
Emails
Medical reviews
HR communications
Underwriting documents
Why this matters:
The claim file often reveals errors, contradictions, or shortcuts the insurer never mentions.
How to avoid it:
Send a written request for the entire claim file before filing an appeal. The contents can make or break your case.
3. Not Gathering Proof of Premium Payments
When beneficiaries are grieving, they usually don’t think to gather pay stubs, bank statements, or benefit summaries.
But this is one of the most powerful pieces of evidence you can have.
Why this matters:
If the insurer accepted premiums — sometimes for years — they cannot later claim the policy “never went into effect.”
Federal courts and regulators have warned insurers about this exact issue.
How to avoid it:
Compile every record showing premiums were paid, especially for employer-sponsored policies.
4. Trusting the Insurance Company’s Summary Instead of the Actual Policy
Insurance companies often rely on summaries that simplify (or misstate) coverage.
But the actual policy language controls, not the summary on their website.
Why this matters:
Many denials collapse once the full policy is reviewed.
How to avoid it:
Request the entire policy, including:
All riders
Amendments
Summary Plan Description
Certificate of Coverage
Then compare what the insurer said to what the policy actually says.
5. Waiting Too Long to Respond or Appeal
Timing is everything in life insurance claims — especially ERISA claims.
Why this matters:
Appeal deadlines are often 60–180 days. Miss it, and you’re locked out of your own claim.
How to avoid it:
As soon as you receive a denial or request letter:
Mark deadlines on your calendar
Set reminders
Seek legal help immediately
Delay is one of the insurer’s biggest advantages.
6. Submitting a DIY Appeal Without Knowing the Rules
Many beneficiaries try to “explain their side,” not realizing the rule that changes everything:
Under ERISA, anything missing from your appeal cannot be added later in court.
Most people don’t know this — and insurers don’t warn them.
Why this matters:
A weak or incomplete appeal can permanently damage your claim, even if your case is strong.
How to avoid it:
Never file an appeal without reviewing:
The denial letter
The claim file
The policy
All medical or employment records
A legal review at this stage is critical.
7. Not Asking a Life Insurance Attorney Early Enough
Beneficiaries often wait to get legal help until after an appeal is denied — or worse, after the insurer delays for months.
Why this matters:
The earlier an attorney gets involved, the stronger your case becomes. A lawyer can:
Spot legal violations
Identify HR errors
Gather missing documents
Build a complete administrative record
Stop insurers from using tactics that weaken your claim
Most strong cases win before ever going to court — because the appeal is handled correctly.
How to avoid it:
Reach out as early as you can. Even a quick consultation can prevent major mistakes.
Final Thoughts
Life insurance claims are supposed to protect families — not trap them in paperwork and legal loopholes.
By avoiding these seven common mistakes, you give yourself the best chance of receiving the benefits your loved one intended for you.
If you’re feeling overwhelmed or unsure where to start, you don’t have to do this alone.
📞 Need Help With a Denied Life Insurance Claim? Call 1-888-510-2212
Kadetskaya Law Firm LLC
📞 1-888-510-2212
📧 info@life-insurance-lawyer.com
