We recently secured a full $321,000 payout after Primerica denied a life insurance claim based on alleged technical and application-related issues. The beneficiary had been told the denial was final and that the policy was unenforceable. After a full legal review of the policy, underwriting file, and claim correspondence, we identified multiple weaknesses in Primerica’s position and forced a complete reversal.
This case illustrates a hard truth. Many life insurance denials, including those issued by Primerica, rely on assumptions that beneficiaries will not challenge the decision. When those assumptions are tested, the denial often falls apart.
Below are fifty common reasons life insurance claims are denied, with a focus on how these issues arise in real cases and why they are frequently contestable.
Fifty Common Reasons Life Insurance Claims Are Denied
Policy Status and Payment Issues
Policy lapsed due to alleged nonpayment
Premium notices were sent to an outdated address, and no lapse warning was received.Policy canceled shortly before death
The insurer relied on a cancellation request made during financial distress without confirming intent.Grace period misapplied
Death occurred during a contractual grace period, but the insurer treated the policy as inactive.Automatic draft failure
Bank information changed, drafts failed, and the insurer canceled coverage without notice.Universal life cash value depletion
Fees and loans exhausted the account value without clear disclosure to the policyholder.Term policy expired shortly before death
The insurer denied despite evidence the insured attempted renewal.Conversion paperwork not processed
The insured requested conversion, but internal delays prevented completion.Premium misapplied to wrong policy
Payments were credited incorrectly, leading to a false lapse.
Application and Underwriting Allegations
Alleged misrepresentation of medical history
The insurer claimed an omission that was unrelated to the cause of death.Agent-entered errors
Information disclosed to the agent was entered incorrectly on the application.Ambiguous health questions
Vague wording led to answers later labeled false.Undisclosed medications
Routine or short-term prescriptions were used to justify rescission.Failure to disclose minor conditions
Insurers exaggerated the significance of resolved or non-serious issues.Weight or height discrepancies
Minor variations were treated as material misstatements.Tobacco use disputes
Cessation or occasional use was recharacterized as fraud.Income misstatements
Estimated or fluctuating income was claimed to affect underwriting.Prior insurance not disclosed
Old or lapsed policies were treated as intentional concealment.Criminal history allegations
Nonviolent or dated offenses were cited as material risk factors.
Contestability and Exclusions
Death within contestability period
Insurers scrutinized applications for any inconsistency.Suicide exclusion asserted
Even when evidence supported accidental death.Criminal activity exclusion
Applied without proof of conviction or causal connection.Hazardous activity exclusion
Vague terms used to deny claims involving recreation.Travel exclusions
Deaths abroad misclassified under risk region clauses.War or terrorism exclusions
Applied beyond the scope of the policy language.Intoxication exclusions
Trace substances used without proof of causation.
Beneficiary and Documentation Issues
Outdated beneficiary designation
Life changes occurred, but forms were never processed.Missing beneficiary form
Insurer default rules conflicted with intent.Multiple claimants
Interpleader filed to delay payment.Minor beneficiaries without trust
Insurer refused payment pending court action.Beneficiary predeceased insured
No contingent beneficiary listed.Employer listed as beneficiary in error
Company no longer existed or had no insurable interest.
Group and Employer-Sponsored Coverage
Employment termination not communicated
Coverage ended without notice of conversion rights.Leave of absence premium failures
Payroll deductions stopped without warning.HR failed to process enrollment
Premiums accepted, coverage later denied.Carrier transition errors
Optional coverage dropped during plan changes.Misclassified employment status
Full-time versus part-time errors voided coverage.Retiree coverage misunderstood
Insured believed coverage continued after retirement.
Policy Type Confusion
Confusion between life and supplemental policies
Cancer or critical illness products misapplied.Credit life policy limitations
Loan satisfied before death.Mortgage life mismatch
Refinance voided policy applicability.Survivorship policy misunderstood
Benefit payable only after both insureds died.Return of premium conditions unmet
Early cancellation voided benefit.
Administrative and Technical Denials
Missing documentation claims
Insurer ignored records already submitted.Late filing allegations
No contractual deadline existed.Internal underwriting rules applied retroactively
Standards not disclosed in the policy.Inconsistent insurer interpretations
Different outcomes for identical facts.Policy issued despite red flags
Insurer later claimed it would never have approved coverage.Waiver and estoppel ignored
Premium acceptance contradicted denial.Recordkeeping failures
Lost forms used against beneficiaries.Boilerplate denial letters
Conclusions stated without factual support.
Why Primerica Denials Are Often Reversible
In the $321,000 Primerica case, the denial relied on assumptions rather than proof. Once we demanded the underwriting file, agent communications, and internal guidelines, the insurer could not support its position. The policy was enforced, and the beneficiary recovered the full amount.
Primerica claims are frequently denied using standardized language that sounds definitive but does not hold up under legal scrutiny. Many denials collapse once the insurer is forced to justify how the alleged issue actually affected risk or coverage.
Do Not Treat a Denial as the Final Answer
A life insurance denial is not a court ruling. It is the insurer’s position, nothing more. Many denials are issued because insurers expect no pushback. When challenged properly, especially in high-value claims like this $321,000 Primerica recovery, the outcome can change entirely.
If a life insurance claim has been denied, even for reasons that sound technical or complex, it may still be enforceable. Legal review often reveals that the denial was overstated, unsupported, or inconsistent with the policy itself.