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 SGLI?
Servicemembers’ Group Life Insurance (SGLI) is a federal program providing up to $500,000 in coverage for active duty servicemembers, reservists, and certain veterans. Managed by the Department of Veterans Affairs (VA) but administered through private insurers, SGLI benefits are paid to the designated beneficiaries upon the servicemember’s death.
Unfortunately, claims are often denied due to paperwork errors, disputed designations, or alleged exclusions.
Why SGLI Claims Get Denied
Common denial reasons include:
- Failure to convert SGLI to Veterans’ Group Life Insurance (VGLI) after discharge
- Alleged non‑coverage at the time of death
- Disputes over beneficiary designation validity
- Clerical errors in military or insurance records
- Misrepresentation or fraud allegations
- Death ruled outside the scope of covered service
- Failure to submit proper proof of loss
- Cause of death exclusions (e.g., felony participation)
- VA administrative processing errors
- Claims denied due to incomplete paperwork
What To Do After a Denied SGLI Claim
- Request a detailed denial letter and complete claims file immediately.
- Gather military records, SGLI elections, and death certificate.
- Avoid direct communication with the insurer without legal advice.
- Contact an experienced SGLI attorney to challenge the denial.
- Act quickly federal appeal rights and deadlines are strict.
Your Legal Rights
- Beneficiaries can appeal and demand full disclosure of records.
- Insurers must justify denials with clear policy terms and evidence.
- Federal law allows lawsuits to enforce payment when appeals fail.
Case Example
We helped a family recover $400,000 in SGLI benefits after an insurer wrongfully claimed the servicemember had no valid coverage due to administrative error. Through legal action, we secured full payment plus interest.
Frequently Asked Questions
Q: What happens if SGLI wasn’t converted to VGLI after discharge?
A: Coverage may lapse, but denials based on administrative errors can often be challenged.
Q: Can beneficiary disputes block payment?
A: Yes, but courts can resolve conflicts when designations are clear.
Q: How long do I have to appeal?
A: Deadlines are strict under federal law. Missing them can end your claim.
Q: Do I need an attorney?
A: Yes, SGLI denials involve military and federal procedures that require experienced legal guidance.
How We Help
- Investigate insurer and VA records thoroughly.
- Demand full disclosure of military and insurance files.
- Challenge wrongful denials caused by clerical errors or exclusions.
- File lawsuits under federal law when appeals fail.
- Secure rightful payouts for military families nationwide.
Contact Us
If your SGLI claim has been denied, don’t wait. Federal deadlines are strict, and insurers count on families missing them. Call 800‑330‑2274 for a free consultation. No fees unless we win.
Key Takeaways
- SGLI provides up to $500,000 in coverage for servicemembers.
- Denials often result from paperwork errors, disputed designations, or alleged exclusions.
- Federal deadlines are strict, act quickly.
- Experienced attorneys dramatically improve the chances of success.
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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“After waiting months with no payout, the insurer claimed we hadn’t submitted the right paperwork. The Lassen Law Firm took over, gathered the necessary forms, and pushed the claim through in under three weeks. Efficient and professional from start to finish.”- Michael H.
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.
