Delayed Life Insurance Claim Fact Sheet
Christian Lassen, Esq. | Quoted in The Wall Street Journal | 25 Years Experience Helping beneficiaries nationwide resolve delayed life insurance claims.
What Is a Delayed Life Insurance Claim
A delayed life insurance claim occurs when an insurance company fails to pay benefits within a reasonable time after receiving a claim. While insurers may request documentation or conduct investigations, extended delays without clear justification are often improper.
This fact sheet provides a general overview of why delays occur, what beneficiaries can do immediately, and the basic legal principles that apply.
Common Reasons Life Insurance Claims Are Delayed
• Contestability period reviews of medical history
• Repeated requests for documents already submitted
• Questions regarding the cause or manner of death
• Conflicting beneficiary claims
• Employer or administrator errors in group life insurance policies
• Additional scrutiny of deaths occurring outside the United States
• Internal insurer processing backlogs
Immediate Steps To Take
- Ask the insurer for a written explanation of the delay
- Confirm all required documents have been submitted
- Keep copies of all correspondence and records
- Do not submit unnecessary materials without clarification
- Be mindful of how long the claim has been pending
Legal Rights Beneficiaries Should Know
• Insurers must process valid claims within a reasonable time
• Unreasonable delays may violate state insurance laws
• Employer sponsored policies may be governed by ERISA
• Courts may award damages when insurers delay in bad faith
Frequently Asked Questions
How long should a life insurance claim take
Most valid claims are paid within 30 to 60 days once documentation is complete.
Can insurers delay indefinitely
No. Prolonged delays without justification may violate the law.
Does a delay mean the claim will be denied
Not necessarily. Many delayed claims are paid once pressure is applied.
When should legal help be considered
If a claim has been delayed beyond 30 to 60 days without a clear reason, legal guidance is often appropriate.
Key Takeaways
• Delays are common but not always justified
• Excessive document requests are a common stalling tactic
• Beneficiaries have enforceable legal rights
• Prompt action improves outcomes
For legal guidance and representation regarding delayed life insurance claims, see our main page on Delayed Life Insurance Claims or contact our office for a free consultation.
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Written & Reviewed by Christian Lassen, Esq., Nationally recognized life insurance lawyer: 25 years experience, hundreds of millions recovered. Quoted in The Wall Street Journal ( May 17, 2025).
Last reviewed: Jan 3, 2026 | Contact 800-330-2274
Our FAQ
Have questions? We are here to help. Still have questions or can't find the answer you need? Give us a call at 800-330-2274 today!
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A grace period is the time after a missed payment during which the policy remains in force, usually 30 to 60 days depending on state law and policy terms.
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No. In most states, insurers must send a written notice of overdue premiums and warn of pending lapse before terminating coverage.
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The policy may still be enforceable. Beneficiaries can challenge the lapse based on the insurer’s failure to provide required notice.
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Yes. If the insured dies during the grace period, the policy is still considered active, and benefits should be paid.
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Yes. In group life insurance policies, employers sometimes fail to forward premiums properly, leading to wrongful lapse denials.
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Yes. If automatic payment setups fail through no fault of the insured, lapses may be challenged.
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Some policies automatically borrow against cash value to cover missed payments. Failure to apply this correctly can lead to wrongful lapse claims.
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Possibly. Some courts excuse nonpayment if the insured was mentally incapacitated and missed premiums without proper notice.
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No. Reinstatement must occur while the insured is alive, but wrongful lapse denials can still be challenged posthumously.
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Not without following strict notice and grace period rules. Beneficiaries can often challenge technical denials.
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Deadlines vary by state, but it’s critical to act within 1 to 5 years depending on the policy and jurisdiction.
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Not necessarily. Payments mailed within grace periods or accepted by insurers may keep coverage active.
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Bank records, payment receipts, insurer correspondence, and premium notices are key evidence.
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If the insurer used an outdated address despite updated information, lapse denials can often be overturned.
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Possibly. If the insured submitted a reinstatement application before death, it may help challenge a lapse denial.
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In some states, special grace periods and protections applied during COVID-19 emergencies. They can help fight wrongful lapses.
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Only if the insurer followed all legal notice and grace period requirements. Otherwise, beneficiaries may still recover.
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Misapplied premiums can lead to wrongful lapses — and courts often hold insurers accountable for these errors.
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An attorney can obtain records, challenge improper lapses, negotiate settlements, and litigate if necessary to enforce payment.
Our Clients Speak Volumes
The Right Choice for Your Claim
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“My husband died overseas, and the insurer stalled the claim citing lack of documentation. The Lassen team got official death records from abroad, translated and authenticated them, and made the insurer pay. They truly handled everything.”- Patricia W.
Why The Lassen Law Firm Is Different
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Proven National Results
With over two decades of exclusive focus on life insurance litigation, we’ve helped thousands of families recover wrongfully denied benefits. Our reputation for fast, strategic resolutions has made us a trusted national resource for complex claim disputes.
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Recognized ExpertisePerfect 10.0 Avvo rating endorsed by over 1,700 attorneys; life member of the Multi-Million Dollar Advocates Forum; ranked among the top 1 percent of lawyers nationally for life insurance litigation.
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