Denied Stonebridge Life Insurance Claim? You Still Have Legal Options
Has your life insurance claim been denied? If so, you're not alone—and you're far from powerless. Life insurance companies frequently reject valid claims, often citing missing paperwork, misstatements on the application, or alleged policy violations. But with the help of an experienced life insurance denial attorney, those decisions can often be reversed. Our firm recently secured a $500,000 payout from Stonebridge Life Insurance after the company initially denied the claim. The denial was based on what the insurer claimed was an application error, but we uncovered the real story, challenged the decision, and obtained the full death benefit for our client.
This case underscores a critical truth: life insurance companies may issue denial letters, but that doesn’t mean the case is closed. Whether the issue is documentation, misrepresentation, or something more complex, beneficiaries often have strong legal standing to fight back—and win.
What To Do Immediately After a Life Insurance Claim Denial
If you’ve received a denial letter from Stonebridge or any other life insurance company, the first step is understanding why the claim was denied. Many denials stem from incomplete documentation, especially if the claim was submitted without the correct version of the death certificate or other required forms. Insurers typically need a completed claim form and a certified copy of the insured’s death certificate issued by a governmental agency. A funeral home copy is rarely enough.
In cases where the policyholder passed away within two years of the policy's start date, the insurer is likely to invoke the contestability clause. This allows them to investigate the death in detail, looking for undisclosed health issues or potential suicide. If the policy includes a suicide exclusion—as most do—the insurer may try to deny the claim entirely. However, even under these circumstances, beneficiaries may be entitled to a refund of the premiums paid. And in many cases, denials based on such exclusions can be reversed with legal intervention.
The Most Common Reasons Life Insurance Claims Are Denied
Life insurance denials happen for many reasons, but the most frequently cited causes fall into a few categories:
Missing documentation: Claims submitted without official death certificates, proof of beneficiary status, or the correct claim forms are often rejected or delayed.
Material misrepresentation: If the insurer believes the policyholder provided inaccurate or incomplete information on the application, they may declare the policy void.
Fraud: Any evidence of fraud by either the policyholder or the beneficiary can trigger an outright denial.
Policy lapse: If premiums were not paid and the policy lapsed before the insured’s death, the claim may be denied—though in some cases, grace period rules or mailing errors may override this.
Exclusions: Suicide within the contestability period, death during criminal activity, or death due to certain high-risk behaviors may fall under explicit policy exclusions.
How Smoking and Drinking Contribute to Claim Denials
Two lifestyle factors that regularly result in denied life insurance claims are smoking and alcohol use. These are considered “material” health disclosures because they directly impact life expectancy and risk calculations. When an insured individual fails to disclose these habits—or misstates them—insurers may deny the claim on grounds of misrepresentation.
Smoking: If an applicant fails to disclose that they smoke or misrepresents their usage, and then dies from a smoking-related illness such as lung cancer or heart disease, the insurer may argue that the policy was issued under false pretenses. Even occasional smoking—if left undisclosed—can lead to denial.
Alcohol use: Applicants who underreport or fail to disclose excessive drinking habits may face scrutiny if they die from alcohol-related conditions, such as liver disease, heart failure, or accidents. Life insurers regularly review medical records and toxicology reports when alcohol is suspected as a factor.
Even if the insured’s cause of death wasn’t directly related to smoking or drinking, the mere presence of misrepresentation on these issues can be used to deny the claim.
What Is Material Misrepresentation in Life Insurance?
Material misrepresentation refers to the act of providing false, misleading, or incomplete information on an insurance application in a way that would have influenced the insurer’s decision to issue the policy or price it appropriately. It is one of the most common grounds used by insurers to deny claims. The standard is not whether the insured intended to mislead, but whether the insurer would have issued the same policy if they had known the truth.
Some of the most common areas of misrepresentation include:
Smoking status or tobacco use
Frequency and quantity of alcohol consumption
Existing health conditions or past surgeries
Employment details, including dangerous occupations
Income, net worth, or financial stability
Date of birth, height, and weight
Other life insurance policies already in effect
Mental health diagnoses or treatment history
Criminal convictions, including DUIs
If the misrepresented detail was central to the underwriting process—such as omitting a heart condition when applying for a policy—it may be considered material. However, not all errors meet this threshold. Courts often require insurers to demonstrate that the misrepresentation directly affected their risk assessment.
Frequently Asked Questions About Denied Life Insurance Claims
What should I do if my life insurance claim was denied due to missing paperwork?
Start by reviewing the denial letter carefully. If the insurer says documents are missing, ask for a list of required items. Most claims require a certified death certificate and completed claim forms. If you submitted a funeral home copy, that may be insufficient. Providing the correct documents may resolve the issue without further delay.
Can a life insurance company deny a claim for misrepresentation even if the death had nothing to do with the error?
Yes, they can attempt to—but that doesn’t mean the denial is valid. Courts often rule that misrepresentations must be material to the risk and related to the insurer’s decision. If the misstatement had no link to the cause of death, you may have grounds to challenge the denial.
What is considered material misrepresentation?
A material misrepresentation is any false or omitted information that would have changed the insurer’s decision to issue the policy or set the premium. For example, failing to disclose a heart condition when applying for life insurance could be material. But forgetting to report a minor, resolved condition might not be.
Does smoking have to be disclosed even if the person only smoked occasionally?
Yes. Life insurance applications often ask about tobacco use within the last 12 months. Failing to disclose occasional or social smoking could be grounds for a denial if the death is linked to a smoking-related illness.
Can alcohol use lead to a claim denial?
Yes, especially if the policyholder underreported their alcohol consumption and died from an alcohol-related condition. Life insurers consider heavy drinking a high-risk behavior and expect accurate disclosure during the application process.
What is the suicide clause in a life insurance policy?
The suicide clause is a standard provision that allows the insurer to deny benefits if the policyholder dies by suicide within the first two years of the policy. After that period, suicide is generally covered unless excluded elsewhere in the policy.
Can I appeal a denied life insurance claim?
Absolutely. Every insurer has a formal appeal process. You can submit additional documents, legal arguments, or evidence disputing the denial. If the appeal fails, you may still have the right to file a lawsuit.
Is legal help necessary for a life insurance claim denial?
In many cases, yes. Insurance companies have teams of attorneys working to protect their bottom line. Hiring a lawyer levels the playing field, increases the chance of success, and often leads to faster resolution.
Can a lawyer help if the policy was rescinded?
Yes. If the insurer claims the policy is void due to misrepresentation, a lawyer can evaluate whether that rescission is legally valid. Many policies are rescinded improperly, especially when the alleged error is minor or unrelated to the death.
How long do I have to challenge a life insurance denial?
Time limits vary by state and policy, but most states allow a few years to file a legal claim. However, it’s best to act quickly, as delays can limit your options and allow the insurer to close the file.