Denied Life Insurance Claim Fact Sheet
Christian Lassen, Esq. | Quoted in The Wall Street Journal | 25 Years Experience Helping beneficiaries nationwide recover denied life insurance claims.
What Is a Denied Life Insurance Claim?
A denied life insurance claim occurs when an insurance company refuses to pay death benefits after receiving a claim from a beneficiary. While insurers must provide a stated reason for denial, many rely on overly aggressive interpretations of policy language or incomplete investigations.
This fact sheet provides a high level overview of common denial reasons, immediate steps to take, and the basic legal rights beneficiaries should understand.
Common Reasons Life Insurance Claims Are Denied
• Alleged misstatements or omissions on the application
• Claimed lapse due to missed premiums or notice issues
• Suicide exclusions within the contestability period
• Death during activities listed as excluded risks
• Conflicting beneficiary claims
• Allegations of fraud in obtaining the policy
• Errors in employer sponsored or ERISA governed policies
• Deaths categorized as suspicious without sufficient evidence
Immediate Steps After a Denial
- Request a written denial letter from the insurance company
- Collect all relevant documents, including the policy and application
- Do not submit appeals or statements without legal advice
- Consult an experienced life insurance attorney promptly
- Be mindful of deadlines, which can be very short in some cases
Key Legal Rights to Know
• Insurers must justify denials under the policy terms
• Beneficiaries may appeal or challenge improper denials
• Lawsuits may be filed for breach of contract or bad faith
• Courts frequently rule against insurers that act unfairly
Brief Case Example
Our firm recently reversed a $700,000 denial based on alleged misrepresentation regarding high blood pressure. After identifying flaws in the insurer’s review, full benefits were paid to the beneficiary within two months.
Frequently Asked Questions
Can a claim be denied after the contestability period?
Generally only for intentional fraud. Most policies become incontestable after two years.
What if the policy lapsed?
Insurers must prove proper notice and compliance with policy requirements. Many lapse denials can be challenged.
How fast are appeal deadlines?
Some deadlines, especially under ERISA, may be as short as 60 to 90 days.
Is an attorney necessary?
Legal representation significantly increases the likelihood of overturning a denial and protects against missed deadlines.
How We Help
• Review denial letters and policy language
• Identify weaknesses in insurer justifications
• Handle appeals and litigation nationwide
• Pursue full payment of rightful benefits
Key Takeaways
• Life insurance denials are common but often improper
• Beneficiaries have strong rights under the law
• Acting quickly is critical
• Experienced legal counsel can change the outcome
For full guidance and representation, see our main page on Denied Life Insurance Claims or contact our office for a free consultation.
Free Case Evaluation Contact Us!
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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“We were told the policy lapsed before my mother died. But we had receipts showing otherwise. Lassen Law Firm used them to force the company to honor the contract. They don’t mess around.”- David K.
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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Client-First AdvocacyNo upfront fees: our contingency fee guarantee aligns our interests with yours; we provide personalized, compassionate representation from your initial consultation through resolution.
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Media & Community LeadershipQuoted in The Wall Street Journal and featured in leading legal publications; frequent speaker at national conferences; dedicated to charitable efforts supporting pediatric cancer care.
