Most people have heard of the suicide exclusion in life insurance policies. Far fewer realize that many policies also contain something called a felony exclusion.
This clause allows an insurance company to deny the death benefit if the insured dies while committing a felony.
At first glance, that may sound like it only applies to serious criminals. In reality, the scope of this exclusion is much broader and far more dangerous for ordinary families. Good people make bad decisions. And many everyday actions can be classified as felonies under state or federal law without anyone realizing it.
That is exactly why insurance companies like this exclusion.
What the Felony Exclusion Really Means
The felony exclusion usually states that if the insured dies while engaged in a felony or during the commission of a felony, the insurer does not have to pay the claim.
Insurers justify this by arguing that criminal conduct increases risk. That may make sense in cases involving violent crime or armed robbery. But in practice, the exclusion is often used in situations that have nothing to do with violence, intent, or moral wrongdoing.
Because felony laws are broad and technical, an insurer can often find a way to argue that the insured was committing a felony at the time of death or immediately before it.
How Ordinary People Can Accidentally Trigger a Felony Exclusion
Many people are shocked to learn how easy it can be to fall into felony territory.
Here are a few real world examples that show how this happens.
Using Someone Else’s Online Account
Accessing another person’s social media or email account without authorization can fall under federal computer or wire fraud laws. Depending on how it is charged, this can be a felony.
If someone dies shortly afterward, even in an unrelated accident, an insurer may try to argue that the death occurred during the commission of a felony.
Sharing Prescription Medication
Giving a friend a few leftover pain pills may feel like helping. Legally, it is distribution of a controlled substance. In most states, that is a felony.
If the insured dies in a car crash while driving to drop off the medication, the insurer may claim the felony exclusion applies.
Vandalizing a Mailbox
Mailboxes are considered federal property. Damaging or destroying one can be a federal offense and in some cases a felony.
If the insured dies during or immediately after such an act, the insurer may try to use this to deny the claim.
DUI Related Deaths
Driving under the influence becomes a felony in many situations, especially if someone is injured or killed.
When an insured dies in a drunk driving crash, insurers frequently invoke the felony exclusion to avoid paying benefits.
Can Insurance Companies Really Do This?
Yes. And they do.
Insurance companies actively look for reasons to deny large claims. If they find any evidence suggesting the insured may have been committing a felony, they will often deny first and force the family to fight.
Many families never challenge the denial because they assume the insurer must be right.
That is a mistake.
How Felony Exclusion Denials Are Beaten
These cases are highly fact specific, and many denials are legally wrong.
Common defenses include:
The alleged felony had nothing to do with the cause of death
The conduct does not actually qualify as a felony under the law
The policy language is vague or ambiguous and must be interpreted in favor of coverage
The insurer is stretching the facts or the timeline to manufacture a denial
Courts often rule against insurers who try to abuse these exclusions, especially when the conduct was not violent, intentional, or related to the death.
What to Do If Your Claim Was Denied Under a Felony Exclusion
If you receive a denial letter citing a felony exclusion, do not assume the case is over.
These denials are frequently overturned once a lawyer forces the insurer to justify its position under the actual policy language and the actual criminal law.
Our firm focuses exclusively on denied life insurance claims. We regularly handle cases involving felony exclusions and other misconduct related exclusions.
We know how insurers misuse these clauses and how to dismantle their arguments.
If your claim was denied for this reason or any similar reason, contact us. The consultation is free, and you pay nothing unless we recover benefits for you.