Life insurance coverage generally includes deaths classified as homicide. However, when the policyholder is murdered, the life insurance claim process often turns into a legal battleground. What makes murder-related claims unique is not just the violent nature of the death, but how the law evaluates the intent, timing, and potential involvement of the beneficiary. If you need a North Carolina life insurance claim denial attorney call us.
A murder claim can trigger investigations that span both criminal and civil court systems. The outcome may depend more on legal definitions of complicity and motive than on the actual cause of death. Even if a beneficiary is not charged with murder, they may still be disqualified from receiving the death benefit if the insurer or court finds they played a role in the death.
What Is Covered When the Insured Is Murdered
If the insured is killed after the policy has been active for at least two years, the life insurance company typically pays the benefit as long as no exclusions apply and the beneficiary is not implicated. Most policies do not contain blanket exclusions for homicide. Instead, coverage hinges on who is involved and whether the circumstances suggest foul play or fraud.
Example: A man with a ten year life insurance policy was killed during a home invasion. His wife was the named beneficiary. Police found no evidence linking her to the crime, and the insurer paid the full benefit after verifying that the death was not related to any excluded activity and that the policyholder had been truthful on his application.
When the Slayer Rule Applies
The slayer rule bars a beneficiary from collecting life insurance proceeds if they were responsible for killing the insured. This rule is recognized in every state, though the details vary. In some states, a conviction is required. In others, a civil court can disqualify the beneficiary based on a lower standard of proof, even without a criminal conviction.
Example: A woman was charged with murdering her estranged husband, who had kept her as the primary beneficiary. She was acquitted in criminal court due to lack of evidence, but the insurance company filed a civil action. The court found enough circumstantial evidence to show involvement. The slayer rule was enforced, and the benefit was awarded to the contingent beneficiary named in the policy.
If no backup beneficiary is named, the proceeds typically go to the insured’s estate and are distributed according to the will or state intestacy law.
Other Reasons Life Insurance Claims Are Denied After a Murder
The Insured Died While Committing a Crime
Some life insurance policies exclude coverage if the insured dies while engaging in illegal conduct. Even if the death is a homicide, the insurer may deny the claim if the policyholder was committing a felony or knowingly placing themselves in a high-risk illegal situation.
Example: A man was killed during an attempted robbery in which he was a participant. His family filed a life insurance claim, but the insurer denied it based on the illegal activity exclusion. The court upheld the denial, finding that the death occurred during the commission of a felony.
The Insured Was the Target of a Fraudulent Scheme
If a murder appears to be part of an insurance fraud scheme—whether orchestrated by the insured or someone close to them—the insurer has grounds to deny the claim. Fraudulent activity may include purchasing a large policy shortly before death, sudden changes in the beneficiary designation, or suspicious circumstances surrounding the death.
Example: A man bought a new life insurance policy naming his girlfriend as beneficiary. He was murdered six months later under suspicious circumstances. Investigators found that the girlfriend had conspired with a third party to arrange the murder. The insurer denied the claim and cooperated with law enforcement. The proceeds were instead directed to the estate and distributed to his legal heirs.
The Murder Occurs Within the Contestability Period
If the murder occurs within the first two years of the policy, the insurer has the right to fully investigate the application for errors or omissions. Even if the cause of death is unrelated to any medical condition, the insurer can still deny the claim if it discovers that the application contained false information.
Example: A policyholder was killed in a random act of violence eleven months after taking out a policy. During the investigation, the insurer discovered that he had failed to disclose a recent cancer diagnosis. Although the murder was unrelated to the illness, the insurer denied the claim based on material misrepresentation during the contestability period.
What to Do If a Murder-Related Claim Is Denied
Murder-related claim denials are often complex and emotionally difficult. Families may be grieving while also facing intense scrutiny from investigators and insurance companies. If your claim has been denied, it is important to act quickly and gather all relevant evidence.
Review the Denial Letter and Policy Terms
The insurer must explain why the claim was denied. This letter often references specific clauses in the policy such as exclusions for illegal activity, material misrepresentation, or suspected fraud.
Collect Supporting Documentation
Gather police reports, autopsy results, death certificates, and any communication between the insured and the insurance company. Medical records and beneficiary change forms may also be critical in proving your case.
Example: A beneficiary was denied payment after her husband’s murder because the insurer claimed he had lied about his income on the application. We showed that the error was minor, unrelated to the claim, and that the insurer had ample opportunity to verify the information before issuing the policy. The claim was reinstated and paid in full.
Work with a Life Insurance Attorney
An attorney can analyze the facts, negotiate with the insurer, and represent you in litigation if necessary. In cases involving the slayer rule or contestability challenges, legal counsel is often the only way to recover what you are owed.