Life insurance is meant to offer peace of mind, ensuring your loved ones receive financial support after your death. Unfortunately, many families are shocked to find their life insurance claim delayed—or outright denied—just when they need it most. Major insurers like Unum, AIG, and Gerber Life frequently reject claims for a variety of reasons, from lapsed policies and application discrepancies to disputes over beneficiaries or exclusions. Understanding the most common denial triggers can help you avoid them—and give you a plan of action if your claim is already under dispute. If you have a beneficiary dispute attorney in Virginia call us.
1. What Happens If Life Insurance Premiums Aren’t Paid on Time?
A leading cause of denied life insurance claims is policy lapse due to non-payment of premiums. If payments stop and the grace period expires, coverage ends. Elderly policyholders are especially vulnerable, as cognitive decline or billing changes can lead to unintentional lapses.
Example: A 74-year-old woman in Florida missed two premium payments due to a recent move. Her policy lapsed, and when she passed away from natural causes, her family’s claim was denied.
Insurers are legally required to issue warnings before canceling a policy. If you’re facing a denial due to missed payments, it’s critical to find out whether the insurer followed state-mandated lapse notification rules. In many cases, policies are wrongfully terminated without proper notice—and those denials can be reversed.
2. Can Employer Mistakes on Group Life Insurance Result in Claim Denial?
Yes. Errors made by HR departments or benefits administrators are a hidden but common source of claim denials. Mistakes such as failing to properly enroll an employee, misclassifying their employment status, or forgetting to update beneficiary information can derail a claim.
Example: A man in Texas was told he had $150,000 in group life insurance through his employer. After his death, his family was told he was never officially enrolled in the plan due to an HR error. The claim was denied entirely.
These are often considered administrative denials, and beneficiaries may still have legal standing. If your loved one died while believing they had coverage, a life insurance attorney can investigate and fight to enforce that expectation under ERISA or state contract law.
3. Can Changing Beneficiaries Cause a Life Insurance Dispute?
Absolutely. Changes to beneficiary designations can spark legal disputes—especially after divorce, remarriage, or family conflicts. Some cases even escalate into interpleader actions, where the insurer deposits the death benefit with the court and lets a judge decide who receives it.
Example: A divorced father passed away, and his ex-wife remained listed as the beneficiary. His adult children contested the designation, claiming he intended to change it but never filed the form. The insurer filed an interpleader and left the decision to the court.
Many people assume that major life changes automatically update their beneficiary designations. They don’t. Always review your life insurance beneficiaries after divorce, remarriage, or the death of a listed individual. If you’re involved in a beneficiary dispute, experienced legal representation is crucial to assert your rightful claim.
4. Are Life Insurance Claims Denied for Policy Exclusions?
Yes. Every policy includes a list of exclusions—specific events or activities not covered by the plan. These can include suicide within the first two years, death during a criminal act, or fatal injuries sustained while participating in high-risk hobbies like base jumping or off-roading.
Example: A man in Arizona died during a late-night ATV race. His insurer denied the claim, citing a policy exclusion for hazardous recreational activities.
The problem? Exclusion language is often vague, and insurers stretch its interpretation to avoid payouts. A skilled life insurance lawyer can examine the policy language, gather evidence about the cause of death, and challenge unfair applications of exclusions.
Get Help If Your Life Insurance Claim Was Denied or Delayed
Insurance companies know that grieving families are vulnerable. That’s why so many claims are initially denied—especially when beneficiaries don’t have legal representation. But just because a claim is denied doesn’t mean it’s over. Many denials can be overturned with the right strategy, evidence, and legal argument.
At our firm, we focus exclusively on denied and delayed life insurance claims. Whether your case involves non-payment issues, HR enrollment mistakes, a contested beneficiary, or a policy exclusion, we have the experience to fight back. Our attorneys prepare aggressive legal appeals, handle ERISA cases, and have recovered millions for clients across the country.
Don’t take the insurer’s word as the final answer. Contact us today for a free consultation, and let us help you secure the benefits your loved one intended for you.