Denied SGLI Claim Fact Sheet
Christian Lassen, Esq. | Quoted in The Wall Street Journal | 25 Years Experience Helping military families nationwide recover denied SGLI benefits.What Is Servicemembers’ Group Life Insurance
Servicemembers’ Group Life Insurance is a federal life insurance program providing coverage for active duty servicemembers, reservists, and certain National Guard members. Coverage typically provides up to $500,000 in benefits and is paid to the beneficiary designated by the servicemember.
SGLI is governed by federal law, and beneficiary designations generally override state inheritance rules.
Why SGLI Claims Are Denied
SGLI claims are often denied due to administrative or record keeping problems rather than true lack of coverage.
Common denial reasons include:
• Missing or disputed beneficiary designations
• Alleged non coverage at the time of death
• Clerical errors in military or VA records
• Failure to convert coverage after discharge
• Allegations of fraud or misrepresentation
• Cause of death disputes
• Incomplete or missing documentation
• Processing errors by the insurer or VA
Immediate Steps After a Denial
- Request the denial letter and claims file
- Collect military service records and SGLI election forms
- Keep copies of all communications
- Avoid appealing without understanding federal procedures
- Be mindful of strict federal deadlines
Legal Principles to Know
• Federal law governs SGLI claims
• Beneficiary designations control payment
• Administrative errors can invalidate denials
• Courts can enforce payment of benefits
Frequently Asked Questions
What if the beneficiary designation is missing
Courts often resolve disputes based on intent and records.
Can SGLI benefits be denied for administrative errors
Yes, but those denials are frequently overturned.
How long do appeals take
Timelines vary, but delays can jeopardize rights.
Is legal representation necessary
SGLI claims involve federal procedures that benefit from experienced guidance.
Key Takeaways
• SGLI is a federal military life insurance program
• Many denials stem from paperwork errors
• Beneficiary designations are critical
• Prompt action improves outcomes
For legal representation regarding denied SGLI claims, see our main page on Denied SGLI 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!
-
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.
-
No. In most states, insurers must send a written notice of overdue premiums and warn of pending lapse before terminating coverage.
-
The policy may still be enforceable. Beneficiaries can challenge the lapse based on the insurer’s failure to provide required notice.
-
Yes. If the insured dies during the grace period, the policy is still considered active, and benefits should be paid.
-
Yes. In group life insurance policies, employers sometimes fail to forward premiums properly, leading to wrongful lapse denials.
-
Yes. If automatic payment setups fail through no fault of the insured, lapses may be challenged.
-
Some policies automatically borrow against cash value to cover missed payments. Failure to apply this correctly can lead to wrongful lapse claims.
-
Possibly. Some courts excuse nonpayment if the insured was mentally incapacitated and missed premiums without proper notice.
-
No. Reinstatement must occur while the insured is alive, but wrongful lapse denials can still be challenged posthumously.
-
Not without following strict notice and grace period rules. Beneficiaries can often challenge technical denials.
-
Deadlines vary by state, but it’s critical to act within 1 to 5 years depending on the policy and jurisdiction.
-
Not necessarily. Payments mailed within grace periods or accepted by insurers may keep coverage active.
-
Bank records, payment receipts, insurer correspondence, and premium notices are key evidence.
-
If the insurer used an outdated address despite updated information, lapse denials can often be overturned.
-
Possibly. If the insured submitted a reinstatement application before death, it may help challenge a lapse denial.
-
In some states, special grace periods and protections applied during COVID-19 emergencies. They can help fight wrongful lapses.
-
Only if the insurer followed all legal notice and grace period requirements. Otherwise, beneficiaries may still recover.
-
Misapplied premiums can lead to wrongful lapses — and courts often hold insurers accountable for these errors.
-
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
-
“They rejected our claim, saying the treatment my wife was undergoing wasn’t FDA-approved. The Lassen team got expert testimony and proved the procedure wasn’t the cause of death. That made all the difference.”- Anthony J.
Why The Lassen Law Firm Is Different
-
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.
-
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.
-
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.
-
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.
