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Delays by Life Insurance Companies in COVID-19 Pandemic

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The COVID-19 pandemic disrupted nearly every aspect of the life insurance claims process. A sudden increase in mortality, government shutdowns, and delays in medical and administrative systems caused many life insurance claims to take longer than expected to resolve.

Not every pandemic related delay was improper. However, in many cases, insurers relied on COVID related complications to justify prolonged delays that exceeded reasonable claims handling timelines.

Why Life Insurance Claims Slowed During the Pandemic

Several objective factors contributed to slower claim processing during the COVID-19 pandemic, including:

  • Delays in issuing certified death certificates

  • Backlogs in medical record departments

  • Limited access to autopsy and coroner reports

  • Reduced staffing at insurers and third party vendors

  • Disruptions in employer reporting for group policies

These issues affected both individual and group life insurance claims nationwide.

COVID-19 as a Trigger for Extended Investigations

Insurers frequently treated COVID-19 related deaths as grounds for expanded investigation. Claims involving recent policy issuance, medical history questions, or unclear causes of death were often placed under heightened review.

In some cases, insurers requested extensive medical records even when the cause of death was clearly documented and unrelated to coverage exclusions.

When Pandemic Delays Became Unreasonable

While short delays were often unavoidable, problems arose when insurers:

  • Continued investigations after receiving complete documentation

  • Failed to explain what information was still needed

  • Repeatedly requested records already provided

  • Used COVID-19 as a general justification without specifics

  • Allowed months to pass without meaningful claim activity

At a certain point, pandemic conditions no longer justified continued inaction.

Contestability Period Reviews During COVID-19

Claims involving policies issued shortly before death were commonly delayed under contestability review. During the pandemic, these reviews often took far longer than typical pre pandemic timelines.

Many beneficiaries experienced delays lasting many months even after insurers had gathered all relevant underwriting and medical records.

Group Life Insurance Delays During the Pandemic

Group life insurance claims were particularly affected. Employer closures, staffing shortages, and record access issues caused delays in verifying coverage, employment status, and beneficiary designations.

In some cases, insurers delayed payment based on incomplete employer information rather than pursuing alternative verification methods.

COVID-19 Cause of Death Issues

Early in the pandemic, cause of death reporting was inconsistent. Insurers sometimes delayed claims while awaiting clarification of whether COVID-19 was the primary or contributing cause of death.

Most life insurance policies do not exclude coverage for COVID-19, but uncertainty around documentation contributed to processing delays.

What Beneficiaries Could Expect Versus What Occurred

Under normal circumstances, many life insurance claims are paid within 30 to 60 days after submission of required documents. During the pandemic, reasonable extensions were expected.

However, delays extending far beyond that range without explanation often raised concerns about claims handling practices rather than pandemic logistics.

What Beneficiaries Should Do After a COVID-Related Delay

If a life insurance claim was delayed during the pandemic:

  1. Request a written explanation for the delay

  2. Confirm which documents have been received

  3. Ask whether the investigation is complete

  4. Document all timelines and communications

  5. Preserve correspondence showing prolonged inactivity

Even during extraordinary circumstances, insurers remain obligated to act in good faith.

How Pandemic Delays Fit Into Life Insurance Claim Disputes

COVID-19 related delays fall within a broader category of delayed life insurance claims involving administrative backlogs, investigative overreach, and lack of transparency.

For a broader discussion of unreasonable claim delays and beneficiary rights, see your Delayed Life Insurance Claims page.

Do You Need a Life Insurance Lawyer?

Please contact us for a free legal review of your claim. Every submission is confidential and reviewed by an experienced life insurance attorney, not a call center or case manager. There is no fee unless we win.

We handle denied and delayed claims, beneficiary disputes, ERISA denials, interpleader lawsuits, and policy lapse cases.

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