After a loved one’s death, life insurance benefits are often the primary source of financial stability for surviving family members. Because of that reality, life insurance law requires insurers to act promptly, communicate clearly, and complete claim investigations within defined time limits.
Yet many beneficiaries are told their claim is delayed because the insurance company is “still being reasonable” or conducting a “routine review.” In practice, these phrases are often used to justify unnecessary delays that violate legal obligations.
Life Insurance Companies Are Bound by Claim Handling Deadlines
Life insurance companies are not allowed to investigate claims indefinitely. In most states, insurers must make a decision within 30 days after receiving a completed claim.
If additional time is truly necessary, the insurer must:
Provide written notice explaining the specific reason for the delay
Identify what information is still needed
Continue providing status updates at regular intervals, often every 30 to 45 days
These requirements exist to prevent insurers from quietly stalling while families wait without income or support.
“Reasonable Investigation” Has a Legal Meaning
Insurance companies often claim they are acting reasonably simply because they requested more records or forwarded the file for internal review. The law does not accept vague explanations.
An investigation is only reasonable if:
The insurer can identify a legitimate coverage issue
The requested information is relevant to that issue
The investigation progresses without unnecessary gaps
The beneficiary is kept informed with meaningful updates
Generic statements such as “the claim is under review” or “additional underwriting is required” do not satisfy legal standards.
When Delay Becomes Unreasonable
A delay may become unreasonable when:
The insurer repeatedly requests documents already provided
The insurer fails to explain what it is investigating
Weeks or months pass with no substantive communication
The stated reason for delay does not relate to coverage
The insurer continues reviewing after all records are received
At that point, the delay may violate state insurance law and expose the insurer to financial consequences.
Example: A beneficiary waited over three months while the insurer claimed it was reviewing medical history, even though the policy was past the contestability period. After legal intervention, the claim was approved and interest was paid for the delay.
Interest and Penalties May Be Owed for Delay
When a life insurance company delays payment without proper justification, it may be required to pay interest on the death benefit. In some jurisdictions, this interest accrues from the date the claim should have been paid.
In cases involving prolonged or intentional delay, insurers may also face bad faith exposure, including statutory penalties or attorney fee liability.
Delaying payment is not risk free for insurers, even though they often act as if it is.
Why Insurers Use Delay as a Strategy
Insurance companies know that beneficiaries are grieving, busy, and unfamiliar with insurance law. Delays are often used to test whether a claimant will stop following up or accept a reduced settlement.
Delay can also be used to buy time while the insurer looks for a denial rationale that did not exist when the claim was first submitted.
Being “reasonable” does not mean searching endlessly for a reason not to pay.
What Beneficiaries Should Do When a Claim Is Delayed
If a life insurance claim has been pending longer than expected:
Request a written explanation for the delay
Ask what specific issue is being investigated
Confirm what documents are still needed
Keep records of all communications and dates
Avoid repeated informal follow ups without documentation
When delays continue without progress, legal review becomes critical.
How a Life Insurance Delay Attorney Can Help
An attorney experienced in delayed life insurance claims can:
Force the insurer to justify the delay in writing
Demand compliance with statutory deadlines
Calculate interest owed on delayed benefits
Escalate the claim through formal legal channels
File suit if the insurer refuses to act
Insurers often move quickly once delay tactics are challenged with legal authority.
Delayed Does Not Mean Denied
A delayed claim is not the same as a denied claim, but delay can be just as damaging financially. The law does not allow insurers to hold funds indefinitely while offering vague explanations.
If your life insurance claim is stalled under the guise of being “reasonable,” you have the right to demand accountability.
A life insurance policy is a contract. Reasonableness is defined by law, not by the insurance company.