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 are required to provide a written reason for denial, many denials are based on aggressive interpretations of policy language, incomplete investigations, or unsupported assumptions.
This fact sheet provides a high level overview of common denial reasons, immediate steps beneficiaries should take, and the basic legal rights that apply after a denial.
Common Reasons Life Insurance Claims Are Denied
Insurance companies rely on a familiar set of defenses when denying claims. Common reasons cited include:
• Alleged misstatements or omissions on the insurance application
• Claimed policy lapse due to missed premiums or notice issues
• Suicide exclusions asserted 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
Many of these denial reasons fail when examined closely under the policy terms and governing law.
Immediate Steps To Take After a Denial
If a life insurance claim has been denied, beneficiaries should act promptly to protect their rights:
Request a written denial letter identifying the policy provisions relied upon
Collect all relevant documents, including the policy, application, and correspondence
Do not submit appeals or written statements without legal guidance
Consult an experienced life insurance attorney as soon as possible
Be mindful of appeal and lawsuit deadlines, which may be short
Early action often determines whether a denial can be overturned.
Key Legal Rights Beneficiaries Should Know
Beneficiaries have enforceable legal rights after a denial, including:
• Insurers must justify denials under the specific policy terms
• Improper denials may be appealed or challenged
• Lawsuits may be filed for breach of contract or insurance bad faith
• Courts frequently rule against insurers that deny claims unfairly
A denial letter is not the final word on whether benefits are owed.
Frequently Asked Questions
Can a life insurance claim be denied after the contestability period
In most cases, only intentional fraud can support denial after the contestability period. Many policies become incontestable after two years, limiting the insurer’s defenses.
What if the insurance company claims the policy lapsed
Insurers must prove proper notice and strict compliance with policy requirements. Many lapse based denials fail due to notice errors or administrative mistakes.
How fast are appeal deadlines after a denial
Deadlines vary. Some appeal periods, especially for ERISA governed policies, may be as short as 60 to 90 days. Missing a deadline can permanently bar recovery.
Is an attorney necessary to challenge a denial
Legal representation significantly increases the likelihood of overturning a denial and helps ensure critical deadlines are not missed.
How We Help Beneficiaries After a Denial
Our firm assists beneficiaries nationwide by:
• Reviewing denial letters and policy language
• Identifying weaknesses in insurer justifications
• Handling appeals and litigation
• Pursuing full payment of rightful benefits
Key Takeaways
• Life insurance denials are common but often improper
• Beneficiaries have strong legal rights
• 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.
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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 mom died after a non-traditional medical procedure, and the insurer refused to pay. Lassen Law proved the treatment had nothing to do with the cause of death. They fought like it was their own family involved.”- Emily N.
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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