If you're listed as the beneficiary of a life insurance policy and aren't aware of it, you could still be entitled to receive the death benefit—even years after the policyholder's death. However, insurance companies may use the delay as a reason to deny your claim, especially if the death occurred during the contestability period.
This article explores what happens when a beneficiary doesn’t know they’ve been named on a policy, and how life insurance companies exploit these situations to avoid paying. If you need a beneficiary dispute attorney in New Hampshire we are here for you.
When Life Insurance Is Offered as a Job Benefit
Many people don’t purchase life insurance on their own—they receive it automatically as part of an employer-sponsored benefits package. This is especially common at mid-to-large-size firms, where onboarding paperwork can total hundreds of pages and involve quick, on-the-spot decisions.
Unlike private policies where the insured might carefully select beneficiaries after thoughtful financial planning, employer-sponsored policies often force rushed designations during orientation. That leads to mistakes, forgotten entries, or beneficiaries who are completely unaware they’ve been named.
And if no one files a claim after the insured’s death? The insurance company simply keeps the premiums and never pays out, unless they’re legally compelled to do otherwise.
Why Delays in Filing Can Jeopardize a Claim
Life insurance companies aren’t legally obligated in most states to monitor whether one of their policyholders has died. If a death occurs and no claim is filed, insurers are not expected to notify potential beneficiaries or initiate a payout. This means that unless someone files a timely claim, the death benefit can sit unclaimed indefinitely—or be forfeited.
Worse, if the insured dies within two years of policy issuance—a period known as the contestability window—the insurance company has the right to investigate the death before paying the claim. If too much time has passed and they claim they can’t investigate properly, they may use that as a reason to deny the claim entirely.
A Real Example: Mark and the Forgotten Beneficiary
Mark was 32 when he started his dream job. In the flurry of new hire paperwork, he was asked to name a life insurance beneficiary. With no close family and not much time to think, he named Cynthia, an ex-girlfriend he had once been close with but hadn’t spoken to in months.
Mark never told Cynthia that she was his beneficiary. Tragically, a year later, Mark died in a car accident. His funeral was held in his new city. Cynthia didn’t attend, unaware of his passing. She also didn’t file a life insurance claim—because she had no idea she was entitled to anything.
Years passed. Then, in a casual conversation with Mark’s best friend, Cynthia discovered that she had been listed as the beneficiary. Shocked, she filed a claim immediately—five years after Mark’s death.
The insurance company denied her claim, citing the contestability period. Since Mark died within two years of obtaining the policy, they argued that a claim review was impossible due to the delay. As a result, they claimed the benefit could not be paid at all.
How Legal Representation Made the Difference
Fortunately, Cynthia contacted a lawyer who specialized in life insurance claim denials. The attorney had dealt with the same insurer before and knew their tactics. He also knew that the insurance company had access to the Social Security Death Master File and could have easily discovered Mark’s death shortly after it occurred.
In other words, the insurance company could have initiated an investigation or notified the beneficiary—but chose not to. During an internal appeals hearing, the lawyer confronted the insurer with this fact. Facing a potential lawsuit, the company reversed its denial and agreed to a settlement for most of the policy value, avoiding what could have been an embarrassing loss in court.
Why Insurance Companies Prefer Beneficiaries to Remain Unaware
Insurers profit when beneficiaries don't file claims. If they don’t pay out on a policy, they retain all the premiums and investment gains without any financial obligation. That’s why they don’t make an effort to notify beneficiaries, even when they have the tools and data to do so.
This problem is especially common with:
Employer-provided group life insurance
Policies with contestability clauses
Beneficiaries listed years prior and never notified
Young, single professionals who name a friend or ex-partner
What to Do If You Discover You’re a Beneficiary After the Insured’s Death
If you’ve just learned that you’re the named beneficiary on someone’s life insurance policy—even years after their passing—you still have rights. But you should act fast and seek legal advice immediately. In some cases, you may face:
Denials based on time elapsed
Accusations of ineligibility due to beneficiary status
Claims that the contestability period expired
Claims that the insurer couldn’t investigate in time
All of these defenses can be challenged—if you have an experienced life insurance attorney on your side.
Call Our Firm for Help With Denied or Delayed Life Insurance Claims
Our law firm handles life insurance claim denials, delays, and disputes nationwide. Whether you’ve recently been denied a payout or just discovered you were named as a beneficiary, we’ll help you understand your rights and fight for what’s yours.
We don’t charge a fee unless you win. Call us today for a free consultation. You’ve waited long enough. Let us help you get the death benefit your loved one wanted you to have.