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 claim occurs when an insurance company refuses to pay benefits after the death of the insured. While insurers must provide a valid reason, many denials are based on questionable interpretations or aggressive tactics designed to protect profits.
Common Reasons for Denial
- Application misrepresentation: Alleged omissions about health, lifestyle, or medical history.
- Policy lapse: Non‑payment of premiums or missed notices.
- Excluded activities: Death during skydiving, illegal acts, or other excluded risks.
- Suicide exclusions: Invoked within the contestability period.
- Beneficiary disputes: Conflicting claims between ex‑spouses, children, or other relatives.
- Fraud allegations: Claims of improper policy purchase or false information.
- ERISA errors: Employer mistakes in group life insurance coverage.
- Suspicious circumstances: Overdose, single‑vehicle accidents, or overseas deaths.
Steps to Take After a Denial
- Request a written denial letter explaining the insurer’s reasoning.
- Collect all documents policy, application, correspondence, and medical records.
- Avoid filing appeals alone many insurer appeal processes are traps.
- Consult an experienced attorney immediately to preserve your rights.
- Act quickly deadlines for appeals can be as short as 60–90 days.
Your Legal Rights
- Insurers must prove a valid reason for denial under policy terms.
- Beneficiaries can appeal, demand reconsideration, or file suit for breach of contract or bad faith.
- Courts often side with beneficiaries when insurers act in bad faith or misapply exclusions.
Case Example
Our firm recently overturned a $400,000 denial where the insurer alleged misrepresentation of high blood pressure. By exposing flaws in their investigation, we secured full payment within two months.
Frequently Asked Questions
Q: Can insurers deny claims after the contestability period?
A: Generally only for fraud. After two years, most policies are incontestable.
Q: What if my policy lapsed?
A: Insurers must prove proper notice was given. Many lapse denials can be challenged.
Q: How long do I have to appeal?
A: Deadlines vary, but ERISA appeals can be as short as 60–90 days.
Q: Do I need an attorney?
A: Yes, an experienced counsel increases the chance of overturning a denial and ensures deadlines are met.
How We Help
- Demand detailed explanations from insurers.
- Identify weaknesses in denial justifications.
- File lawsuits for breach of contract and bad faith.
- Represent clients nationwide in appeals and litigation.
- Secure rightful payouts for families across all 50 states.
Contact Us
If your life insurance claim was denied, don’t wait. Deadlines are short, and insurers count on families giving up. Call 800‑330‑2274 for a free consultation. No fees unless we win.
- Key Takeaways
- Denials are common but often improper.
- Beneficiaries have strong legal rights to challenge them.
- Quick action and experienced counsel are critical.
- Our firm has recovered hundreds of millions for clients nationwide.
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: Dec 7, 2025 | 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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“The company claimed my dad died during a criminal act and denied the policy. Christian’s firm conducted their own investigation, cleared his name, and the benefit was paid in full. They didn’t back down.”- Steven
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.
