Delayed Life Insurance Claims

If your life insurance claim is delayed, you are not alone. Insurance companies often delay paying claims by requesting excessive documentation, conducting lengthy investigations, or disputing the cause of death. At Lassen Law Firm, our sole focus is helping beneficiaries overcome delayed or denied life insurance claims. Christian Lassen, Esq., a life insurance attorney with over 20 years of experience, personally handles every claim nationwide to ensure prompt resolution. If your payout is being delayed without a valid reason, contact us for immediate assistance.

If a life insurance claim is delayed, the beneficiary should demand a written explanation and contact an experienced attorney immediately. Insurers must pay valid claims within a reasonable time under state laws, or they risk facing bad faith penalties.

Why Life Insurance Claims Get Delayed

There are several reasons life insurance companies delay paying claims. Some delays are legitimate, such as when documentation is missing or when multiple beneficiaries dispute the proceeds. However, in many cases, insurers use delay tactics to discourage beneficiaries from pursuing the claim. Common reasons include ongoing investigations into the cause of death, allegations of misrepresentation on the insurance application, or requests for additional documents that have already been provided. Delays can also occur if the death is considered suspicious, if an exclusion clause may apply, or if the policyholder died within the contestability period. Insurance companies are required to process claims promptly under state laws and may face penalties for unreasonable delays. If your claim has been pending for more than 30 to 60 days without a clear reason, it may be time to seek legal assistance.

How an Attorney Can Help Resolve a Delayed Life Insurance Claim

An experienced life insurance attorney can make a significant difference when a claim is delayed. Attorneys know how to compel insurance companies to act by invoking state laws, threatening breach of contract and bad faith litigation, and filing lawsuits if necessary. At Lassen Law Firm, we aggressively pursue delayed claims to either obtain immediate payment or to initiate legal action that forces the insurer’s hand. Our firm demands clear, written explanations for delays, challenges baseless denials, and ensures that beneficiaries are treated fairly. We also handle litigation involving bad faith practices, which can result in additional damages awarded to the beneficiary if the insurer acted improperly. With a strong legal advocate, beneficiaries are much less likely to experience continued delay.

For example, we recently helped a beneficiary recover a $500,000 life insurance payout after the insurer delayed payment for nearly a year, falsely claiming additional documentation was needed. With legal intervention, the claim was fully paid within 30 days.

Common Reasons for Delays

  • Investigation during the contestability period

  • Requests for excessive documentation

  • Disputes over the cause of death

  • Beneficiary designation issues or contests

  • Missing or incomplete death certificate

  • Employer errors in group life insurance claims

  • Insurer stalling tactics to pressure a settlement

  • Suspected misrepresentation on the application

  • Policy lapse allegations that are under review

  • Deaths occurring outside the United States

What to Do If Your Life Insurance Claim Is Delayed

If your life insurance claim is delayed, follow these important steps to protect your rights:

  1. Request a written explanation from the insurance company explaining the reason for the delay.

  2. Gather all correspondence, death certificates, policy documents, and communications with the insurer.

  3. Avoid providing excessive additional documentation without understanding why it is needed.

  4. Contact a life insurance attorney who specializes in delayed and denied claims.

  5. Act quickly — prolonged delays often weaken your case if not addressed early.

The sooner legal pressure is applied, the more likely the insurer will expedite resolution.

Frequently Asked Questions About Delayed Life Insurance Claims

How long does a life insurance company have to pay a claim?

Under most state laws, insurance companies must pay valid claims within 30 to 60 days after receiving proof of death. Delays beyond this period without a valid reason can constitute bad faith.

What causes delays in life insurance claim payouts?

Common causes include missing documents, contestability investigations, disputes over cause of death, beneficiary issues, insurer stalling tactics, and suspicion of application misrepresentation.

Can I sue if my life insurance payout is delayed?

Yes. If the insurer unreasonably delays payment, you may be able to sue for breach of contract and insurance bad faith, potentially recovering not only the death benefit but also extra damages.

Does the contestability period cause delays?

Yes. If the death occurs within the policy’s two-year contestability period, insurers often investigate the application for misrepresentations, which can slow the claims process.

How does a disputed cause of death affect the timing of payment?

If the insurer questions whether the death falls under an exclusion, such as suicide or illegal activity, they may delay payment until an investigation is complete.

What if the insurance company keeps asking for more documents?

You have the right to request a specific explanation for each document request. If the insurer continues stalling without good reason, legal intervention is recommended.

How long should a life insurance investigation take?

A reasonable investigation should take no more than 30 to 60 days. Longer delays may signal bad faith conduct unless a complex issue genuinely requires more time.

Can a delay indicate that the insurer plans to deny the claim?

Yes. Extended delays often precede a formal denial, especially if the insurer is building a case around an exclusion or application misrepresentation.

What should I do if my life insurance claim is delayed more than 60 days?

Consult an experienced life insurance attorney immediately. Prolonged delays often require legal action to force the insurer to honor the policy.

How can a lawyer help resolve a delayed life insurance claim?

A lawyer demands accountability, negotiates directly with claims adjusters and supervisors, invokes bad faith penalties, and, when necessary, files lawsuits to force payment.

Will hiring a lawyer make the process longer?

No. Hiring a lawyer usually shortens the timeline because insurers know they face legal consequences if they continue delaying a claim without justification.

Can delayed claims happen with accidental death policies?

Yes. Accidental death policies often involve additional investigation to determine if the cause of death qualifies, leading to delays if the insurer questions whether an accident occurred.

How does divorce affect delayed life insurance claims?

If a former spouse remains the named beneficiary, insurers may delay payment while investigating whether divorce decrees or automatic revocation statutes affect the designation.

Can ERISA life insurance claims through work be delayed longer?

Yes. Group life insurance claims governed by ERISA often involve administrative steps that can extend timelines, but insurers are still obligated to make timely decisions.

Does a missing death certificate delay life insurance claims?

Yes. A missing or incomplete death certificate can significantly delay claim processing, as insurers require official proof of death to evaluate claims.

Can insurers delay claims for deaths that occurred overseas?

Yes. Deaths abroad often involve delays due to the need for official translations, consular reports, and additional verification of foreign death certificates.

How do I escalate a delayed life insurance claim?

You can file a formal complaint with your state's insurance regulator, send a legal demand letter, or retain an attorney to immediately pursue legal action against the insurer.

Are delays more common with older life insurance policies?

Sometimes. Older policies may involve administrative issues, missing records, or disputes over whether coverage was in force at the time of death.

What laws protect beneficiaries from delayed life insurance claims?

State insurance laws impose strict timelines for insurers to pay claims. In cases of bad faith delay, courts may award interest, penalties, attorney’s fees, and punitive damages.

Should I contact a lawyer or wait for the insurer to act?

You should contact a lawyer as soon as delays exceed 30 to 60 days without a valid reason. Waiting often harms your position by allowing the insurer to prolong the process unchecked.