People buy life insurance to protect others, not themselves. That is why accuracy matters long before a claim is ever filed. Many denied life insurance claims trace back to something that happened at the application stage, often years earlier, when the policyholder never imagined it would matter.
As attorneys who handle denied life insurance claims every day, we see the same preventable mistakes repeatedly. Some denials can be overturned. Others cannot. This article explains the most common application-related errors that lead to valid denials and how policyholders can avoid putting their families at risk.
Do Not Lie or Guess on a Life Insurance Application
Even a small misstatement on a life insurance application can void coverage. This is especially true if the insured dies within the first two years, known as the contestability period.
A life insurance policy is a contract. The insurer relies on the information provided to decide whether to issue coverage and at what price. If the insurer later determines that an answer was false or incomplete and that the information was material, it may rescind the policy entirely.
We routinely see denials based on omitted medical conditions, undisclosed surgeries, forgotten diagnoses, or prescription medications that were not listed. The insurer does not need to prove that the omission caused the death. It only needs to show that it would have changed the underwriting decision.
The safest approach is full disclosure. Paying a higher premium is far better than leaving beneficiaries with no payout at all.
Keep Premiums Current at All Times
Life insurance only pays if the policy is active when death occurs. If premiums are not paid and the policy lapses, insurers usually have a legally valid basis to deny the claim.
Most policies include a short grace period, commonly 30 days. During that time, coverage remains in force. Once the grace period expires, the insurer may cancel the policy. If death occurs after cancellation, even by a single day, the claim is often denied.
We regularly speak with families who assumed coverage was still active, only to learn that a missed payment weeks earlier ended the policy.
If financial hardship arises, do not ignore premium notices. Contact the insurer immediately. Some policies allow payment plans, loans against cash value, reduced paid-up options, or temporary relief. Those options disappear once a policy lapses.
Disclose Risky Activities Before They Become a Problem
Many life insurance policies contain exclusions for high-risk activities. These exclusions are frequently overlooked until a claim is denied.
Common examples include:
• Skydiving
• SCUBA diving
• Rock or mountain climbing
• Private or recreational aviation
• Racing or high-speed motorsports
Some policies list specific excluded activities. Others use broader language such as reckless or inherently dangerous conduct. If an insured dies while participating in an excluded activity that was not disclosed, the insurer may deny the claim.
If high-risk activities are part of your lifestyle, disclose them during underwriting. Insurers may charge a higher premium or add a rider, but disclosure preserves enforceability and protects beneficiaries from surprise denials.
What Happens After a Claim Is Denied
A denial letter is not always the final word. Many denials are legally vulnerable, especially when insurers:
• Fail to prove a misrepresentation was material
• Misread or overextend policy exclusions
• Deny claims during grace or reinstatement periods improperly
• Ignore evidence that undermines their stated rationale
Our firm reviews denied claims at no cost. When a denial lacks legal support, we challenge it aggressively.
A Preventable Outcome Can Still Be a Denial
Some denials are avoidable. Others are legally sound. We have seen families lose substantial benefits because of an overlooked application answer, a lapsed payment, or an exclusion the insured never realized applied.
Life insurance should not be set and forgotten. Applications should be accurate. Premiums should be monitored. Policies should be reviewed periodically, especially after health changes or lifestyle shifts.
Dealing With a Denied Claim
If you are facing a denied life insurance claim based on alleged application errors, nonpayment, or excluded activities, do not assume the insurer is right.
Many claims can be salvaged with proper legal analysis and evidence. Others require an honest assessment of whether the denial is enforceable.
We fight life insurance companies every day. If your claim has been denied, contact us for a free consultation. You do not pay us unless we recover benefits for you.