Life insurance companies may deny a claim or void a policy if the insured has been convicted of certain felonies. These exclusions can apply to crimes committed after the policy was issued, and in some cases, even to prior convictions that were disclosed during the application process. Insurers often rely on specific exclusion clauses that disqualify coverage if the death occurs during or as a result of a felony offense, or if the conviction violates policy terms. If you have Utah life insurance claim issues call us.
Common Felonies That Can Impact Coverage
While every policy is different, insurers most frequently scrutinize or deny coverage in cases involving:
Murder or attempted murder
Manslaughter
Arson
Armed robbery or burglary
Drug trafficking or manufacturing
Kidnapping
Other serious violent or financial crimes
These offenses are often classified as high-risk activities under policy exclusion clauses. In particular, if the death occurs while committing or fleeing from a felony, many policies will automatically deny the claim.
Example: In one case, an insurer denied a $500,000 payout after the policyholder died during an armed robbery he was allegedly participating in. The insurer cited the felony exclusion clause and refused payment to the beneficiary. However, we helped the beneficiary present evidence that the insured had not been involved in the crime, and the claim was ultimately paid.
Can You Recover Life Insurance Benefits After a Felony Exclusion?
If your loved one's policy was voided due to a felony conviction, recovery may still be possible. These cases are often complex, and the language in life insurance policies is not always as clear as insurers suggest. Legal support is critical when navigating exclusions related to criminal history.
An experienced life insurance attorney can examine whether the exclusion was correctly applied and whether the conviction or criminal act truly triggered the clause. In many cases, insurers deny claims based on assumptions or overbroad readings of policy terms.
Example: We successfully reversed a denial in a case where the insured had a prior felony conviction from years earlier that had been disclosed to the insurer. The policy was issued anyway, but after the policyholder died, the insurer claimed the conviction voided the policy. We demonstrated that the insurer had waived its right to rely on that exclusion and forced a full payout.
Will a Felony Conviction Affect Life Insurance Claims?
If the policy is voided due to a felony conviction, it will affect any future claims. This means the death benefit will not be paid, and beneficiaries will be left without the financial protection they were promised. However, not all felony convictions result in automatic exclusions. The impact depends on the specific wording of the policy and whether the conviction or related conduct violated a listed clause.
Importantly, claims submitted before the exclusion was triggered are usually not affected retroactively. For example, if a valid claim was filed before the felony occurred or before the insurer attempted to enforce the exclusion, that claim may still be honored.
Example: A widow contacted us after her husband's claim was denied posthumously when the insurer discovered a recent felony conviction. The conviction had no connection to the cause of death, and the policy was active at the time of death. We argued the exclusion did not apply and secured a settlement on her behalf.
Call us today.