Life insurance denials rarely happen by accident. Insurance companies are financially incentivized to delay, reduce, or avoid payouts whenever possible. They rely on technicalities, vague policy language, and procedural traps to justify refusing payment, even when coverage should apply.
At our life insurance law firm, we have handled thousands of denied claims nationwide. Many were initially rejected for reasons that sounded legitimate but collapsed under legal scrutiny. Below are fifty of the most common reasons insurers deny life insurance claims, followed by how those denials are frequently challenged and reversed.
This list is not theoretical. Every category below reflects real denials we have litigated and overturned.
Application Based Denials and Underwriting Allegations
Alleged material misrepresentation on the application
Failure to disclose a prior medical condition
Omission of prescription medication history
Inaccurate answers regarding smoking or tobacco use
Failure to disclose mental health treatment
Undisclosed prior insurance denials or rescissions
Incorrect height or weight information
Failure to disclose family medical history
Alleged misrepresentation of occupation
Claimed omission of hazardous hobbies
Insurers often exaggerate application issues, especially when death occurs within the contestability period. Courts routinely require insurers to prove that any alleged misstatement was both false and material, meaning it would have changed the underwriting decision. Many denials fail this test.
Contestability Period and Timing Based Denials
Death during the first two years of coverage
Contestability clause applied without proof of materiality
Retroactive rescission of policy after death
Insurer relying on incomplete medical records
Misstatement discovered only after claim review
The contestability period does not give insurers unlimited power. They must still prove intent or material impact. Many carriers misuse this clause hoping beneficiaries will not fight back.
Suicide and Manner of Death Disputes
Suicide exclusion applied without proof of intent
Accidental death misclassified as suicide
Autoerotic asphyxiation labeled as intentional death
Overdose treated as suicide without evidence
Asphyxiation or poisoning wrongly classified
Legally, suicide requires intent. Ambiguity favors beneficiaries, but insurers frequently ignore that rule unless challenged with forensic and legal evidence.
Policy Lapse and Premium Payment Disputes
Alleged lapse due to nonpayment
Grace period miscalculated
Premium notices sent to wrong address
Employer payroll errors causing lapse
Automatic payments improperly terminated
Many lapse based denials fail because insurers did not provide proper notice or mishandled billing. These denials are among the most commonly overturned.
Beneficiary and Ownership Disputes
Competing beneficiary claims
Outdated beneficiary designation
Missing beneficiary form
Alleged forgery or improper change
Divorce related beneficiary disputes
These cases often result in interpleader lawsuits. Courts focus on plan documents, execution requirements, and whether changes were validly made.
Exclusions for Activities, Substances, or Circumstances
Death involving alcohol below legal limits
Marijuana use cited despite legal status
Prescription medication exclusion misapplied
Recreational activity labeled high risk
Travel related exclusion improperly invoked
Insurers frequently stretch exclusions beyond their intended scope. Courts construe exclusions narrowly and against the insurer.
Criminal, Legal, and Conduct Based Denials
Alleged death during commission of a crime
Traffic violations used to trigger felony exclusion
Arrest related death mischaracterized
Alleged fraud without supporting evidence
Policy voided from inception without legal basis
Insurers bear the burden of proving both the conduct and the causal link to death. Many fail.
Medical Causation and Documentation Disputes
Pre existing condition blamed without causation
Cause of death listed as undetermined
Foreign death certificate questioned
Missing autopsy or toxicology report
Medical examiner opinion misused
Insurers often cherry pick medical language. Courts require competent proof, not speculation.
Beneficiary Conduct and Procedural Allegations
Beneficiary accused of misrepresentation
Slayer statute alleged without conviction
Claim delayed due to alleged cooperation failure
Claim denied for missing documents never requested
Ambiguous policy language used against beneficiary
Procedural denials are especially vulnerable. Insurers must follow strict claims handling rules, and failure to do so can invalidate a denial.
Why These Denials Are Often Wrong
Insurance companies count on grief, confusion, and delay. Many beneficiaries assume the denial is final. It is not.
Courts routinely overturn denials where insurers relied on vague language, failed to meet their burden of proof, or violated notice and procedural requirements. Ambiguous policies are interpreted in favor of coverage. Exclusions are narrowly construed. Allegations require evidence.
What to Do If Your Life Insurance Claim Is Denied
If your claim has been denied, do not provide additional statements or documents without legal guidance. Early missteps can lock in a denial.
A life insurance attorney can:
• Analyze whether the denial meets legal standards
• Identify procedural violations
• Obtain insurer claim files and underwriting records
• Draft appeals that preserve court review rights
• File suit when necessary
We have recovered benefits in cases involving misrepresentation, suicide allegations, policy lapses, interpleader lawsuits, ERISA plans, and denials dating back decades.
Final Takeaway
There are many reasons insurers deny life insurance claims, but far fewer reasons those denials hold up in court. If your claim was denied, delayed, or questioned, the decision may be wrong.
Insurance companies rely on silence. We rely on the law.