Top 7 Reasons Life Insurance Claims Get Denied (With Real Cases)
Life insurance companies deny thousands of valid claims every year — often when families need the money most. While denial letters may sound final or intimidating, the truth is that many life insurance denials are legally challengeable.
Below are the top 7 reasons insurers deny life insurance claims, based on real-world cases — and why these denials are often not the last word.
Call 1-888-510-2212 to speak with an experienced life insurance attorney today
Or get a free case evaluation now to find out where you stand.
1. Alleged Misrepresentation on the Application
This is one of the most common denial reasons.
Insurers claim the insured failed to disclose:
A medical condition
A medication
Prior treatment
Smoking or substance use
Real case pattern: A claim is denied a year after the policy was issued, even though premiums were accepted the entire time.
What insurers often fail to prove:
That the information was material
That it affected underwriting
This denial is often reversible.
2. Contestability Period (First Two Years)
Most policies allow insurers to review applications closely during the first two years after issuance.
Real case pattern:
Families are told that any issue during this period justifies denial.
In reality:
Insurers must prove material misrepresentation
Investigations cannot look beyond the time period outlines in the application
Minor or unrelated errors do not justify denial
This denial is often reversible.
3. Policy Lapse or Non-Payment Allegations
Insurers often deny claims by asserting:
“The policy lapsed before death.”
Real case pattern:
Premium payments stopped due to:
Employer errors (group life)
Auto-pay failures
Missed or improper lapse notices
Many lapse denials fail because insurers did not follow required notice rules.
This denial is often reversible.
4. Suicide or Mental Health Exclusions
Life insurance policies often include suicide exclusions — usually limited to the first one or two years.
Real case pattern:
Insurers broadly label deaths as “suicide” without:
Clear evidence
Proper investigation
Consideration of accidental or medical causes
When exclusions are misapplied or timelines miscalculated, denials can be overturned.
This denial is often reversible.
5. Substance, Alcohol, or Medication Exclusions
Insurers frequently deny claims by alleging:
Intoxication
Prescription medication use
Controlled substances
Real case pattern:
Toxicology reports are used out of context, even when:
The substance did not cause death
Policy language is vague
No exclusion clearly applies
Policy wording matters — and many exclusions are narrower than insurers admit.
This denial is often reversible.
6. Beneficiary Disputes or Last-Minute Changes
Claims are often denied or delayed when:
An ex-spouse is still listed
A beneficiary was changed shortly before death
Allegations of incapacity or undue influence exist
Real case pattern:
Insurers refuse to decide and file an interpleader, forcing beneficiaries into court.
These disputes are frequently resolved in favor of families when evidence is properly presented.
This denial is often reversible.
7. “Incomplete Information” or Ongoing Investigation
Some insurers deny claims while claiming:
Missing paperwork
Ongoing investigation
Unresolved questions
Real case pattern:
Families provided everything requested — yet the insurer delays or denies anyway.
Open-ended investigations and vague documentation excuses are often improper.
This denial is often reversible.
Why Insurance Companies Deny So Many Claims
Life insurance companies:
Investigate most aggressively after death
Look for reasons to rescind coverage
Rely on families being overwhelmed
Expect denials to go unchallenged
Many valid claims go unpaid simply because no one pushes back.
Get a Free Case Evaluation Now
If your life insurance claim was denied, delayed, or “under review,” time matters. Deadlines apply, evidence can be lost, and the way a claim is handled early can determine the outcome.
Call 1-888-510-2212 to speak with an experienced life insurance attorney today
Or get a free case evaluation now — no obligation, just answers.
Frequently Asked Questions About Life Insurance Denials
Can a denied life insurance claim really be overturned?
Yes. Many denials are reversed through appeals, legal challenges, or litigation — especially when based on misrepresentation, exclusions, or lapse allegations.
How long do I have to challenge a denied claim?
Deadlines vary. Some policies require action within 60–180 days. Waiting too long can permanently bar recovery.
Should I appeal the denial myself?
Be cautious. In many cases, the appeal becomes the official legal record, and missing evidence or arguments may not be allowed later.
What if the insurer says the denial is “final”?
Insurers often label denials as final even when legal remedies remain. A denial letter does not eliminate your rights.
Does ERISA change the rules?
Yes. Employer-provided group life policies are governed by ERISA and follow strict administrative procedures. Mistakes during the appeal process can be fatal to a case.
Can a delay turn into a denial?
Yes. Delay is often used to avoid triggering appeals or legal review. Extended delay may itself be actionable.
Is a free case evaluation really free?
Yes. A free case evaluation reviews:
Why the claim was denied
Whether it’s challengeable
What deadlines apply
The strongest next step
Life Insurance Claim Denied?
Don’t assume the insurer is right.
Call 1-888-510-2212 today or get a free case evaluation now.
