Our Life Insurance Lawyers Recovered a 20-Year-Old Denied Claim—Here’s How We Did It
Time is not always the end of the road when it comes to denied life insurance claims. Our life insurance attorneys recently succeeded in forcing a major insurer to pay the full policy benefit on a claim that had been denied nearly two decades ago. The case involved an outdated denial that the beneficiary had long believed was final. With the right legal strategy, we were able to reopen the claim, challenge the original denial, and ultimately secure the payout the family had deserved for over twenty years.
Many people assume that once a claim is denied—or too much time has passed—it’s no longer possible to recover life insurance proceeds. But in reality, insurance companies can still be held accountable years after a wrongful denial, especially if the initial decision was based on faulty reasoning, misapplied policy terms, or bad faith. In our case, the insurer had cited a policy lapse due to non-payment, but we uncovered evidence showing the policyholder had never received proper notice. That procedural failure made the denial legally invalid.
Is There a Time Limit for Filing a Life Insurance Claim?
Unlike many legal claims that have strict statutes of limitations, life insurance policies typically do not impose a hard deadline for filing a claim. Instead, they often use vague terms like “reasonable time” or “as soon as practicable.” In practice, this usually means that beneficiaries should file a claim within 60 to 90 days of the policyholder’s death. But what happens when a claim is never filed—or when it’s filed and denied, and the beneficiary never challenges it?
The answer varies depending on state law and the terms of the policy. In most states, there is no absolute limit on how long a beneficiary can pursue a claim, especially if new information comes to light or if the insurance company acted in bad faith. Courts have been known to accept claims or lawsuits even years after the death, particularly when the insurer failed to provide clear notice of denial or when the policy’s beneficiary was unaware of their rights.
How Insurers Use Delay and Denial Tactics to Avoid Payment
Insurance companies count on time passing. They know that the longer a denial goes unchallenged, the less likely it is to be reversed. Many beneficiaries don’t even realize they have the right to contest a denial from years ago. Others assume the insurer’s word is final. But insurers are not the final arbiters—courts are.
Common delay tactics include claiming that a claim was filed too late, citing lack of documentation, or arguing that the policy was void due to lapse or misrepresentation. Even after denying a claim, some insurers fail to properly notify the beneficiary, hoping that the matter will simply fade with time. That’s why consulting an experienced life insurance attorney—even years later—can change everything.
Top Reasons Life Insurance Claims Get Denied
Understanding why claims are denied can help beneficiaries recognize when a denial might be invalid. Here are five of the most common reasons life insurance companies give for denying claims:
Material Misrepresentation: If the insurer believes the policyholder lied or omitted important facts on the application—such as about health, lifestyle, or finances—they may use that as grounds to void the policy, especially during the contestability period.
Suicide Within the Exclusion Period: Most policies contain a suicide clause that excludes coverage if the policyholder dies by suicide within the first one or two years.
Policy Lapse Due to Nonpayment: If premiums weren't paid on time and the policy lapsed, the insurer will often deny the claim. However, lapses caused by mailing errors, lack of notice, or bank issues can be contested.
Death During the Contestability Period: Deaths occurring within the first two years of the policy are subject to heightened scrutiny. If the insurer finds any error or omission on the application, they may attempt to deny the claim.
Exclusions and Limitations: Policies often exclude coverage for specific situations like certain hazardous activities, acts of war, or pre-existing conditions. These exclusions are often misapplied or misinterpreted by insurers seeking to avoid payment.
Reopening Old Denied Claims: When Is It Possible?
Many people are surprised to learn that previously denied claims can be revisited—even decades later. The key factors that allow a claim to be reopened include:
New evidence or documentation not considered during the initial denial
Procedural violations by the insurer (e.g., failing to provide adequate notice)
Misapplication of policy language or legal standards
Demonstrated bad faith or unfair claims practices
Legal changes or favorable court rulings since the original denial
Our law firm specializes in uncovering these types of opportunities. In one case, the insurer claimed a lapse due to nonpayment, but we discovered that premium notices had been sent to the wrong address after the policyholder moved. That technical mistake invalidated the lapse, and we forced a full payout even after twenty years.
Don’t Let Time Rob You of What You’re Owed
If you believe a life insurance claim was wrongfully denied—regardless of how long ago it happened—you should speak to an experienced life insurance attorney. There is no downside to exploring your legal options, and in many cases, old denials can be reversed or re-evaluated. Insurance companies count on silence. We fight back.
FAQ: Filing and Reopening Life Insurance Claims
Is there a statute of limitations for life insurance claims? While many legal claims have statutes of limitations, life insurance policies typically don’t include a firm filing deadline. However, insurers often require claims to be submitted within a "reasonable time," usually 60 to 90 days. State law can affect how late claims are treated.
Can I reopen a life insurance claim that was denied years ago? Yes. Old denials can be challenged, especially if the insurer acted in bad faith, failed to give proper notice, or based the denial on misinterpreted facts or laws. Our firm has successfully recovered benefits on claims denied more than 20 years ago.
What if the policy lapsed due to nonpayment? Lapses are a common reason for denial, but not all are valid. If the insurer didn’t send proper notice or if the lapse resulted from a mistake (like a billing error), the denial may be overturned.
Can a beneficiary still file a claim if they didn’t know about the policy? Yes. Many beneficiaries don’t learn about a policy until years later. As long as the policy was active at the time of death, the beneficiary can often still file a claim—even if it’s well after the fact.
How do I prove that a claim was wrongfully denied? Legal counsel can request the insurer’s claim file, review all communications and policy documents, and identify inconsistencies or violations that support your right to payment.
Is a denial final once the insurer makes their decision? No. Denials can be appealed, reviewed by regulators, or litigated in court. You don’t have to accept the insurer’s first decision.
What is a reasonable time to file a claim after death? While policies recommend filing quickly, courts often accept claims filed months or even years later—especially when there is good cause or the insurer did not make their expectations clear.
What if I don’t have the policy document anymore? The insurance company is required to maintain records. A lawyer can help locate the policy through legal tools and insurer communications.
What role does state law play in late claims? Each state has different rules about when life insurance claims become too old to pursue. Some states allow claims to be revived if fraud, concealment, or procedural error is involved.
Can a denied claim from decades ago be revived if I now have new evidence? Absolutely. If new documentation, witness testimony, or legal arguments have emerged, those can serve as grounds to reopen a previously denied claim.
What is a bad faith denial? A bad faith denial occurs when an insurance company unreasonably refuses to pay a valid claim or delays without justification. This can result in penalties, attorney’s fees, and punitive damages.
How long does it take to resolve an old denied claim? Depending on the case, it may take a few months or over a year. With experienced legal help, the process can often be expedited through negotiation or legal action.
Can I still collect if the original beneficiary is deceased? In many cases, yes. The proceeds may pass to the beneficiary’s estate or to contingent beneficiaries listed in the policy.
Does the insurance company notify beneficiaries of denied claims? Not always. If the insurer does not properly notify the correct beneficiary, the denial may be challenged as procedurally defective.
Can an insurer destroy old claim records? Insurers are legally required to retain claim documents for a set number of years, usually at least seven. If a claim was wrongfully denied and the records no longer exist, courts may allow alternative forms of proof.
Should I speak to the insurance company before calling a lawyer? It’s best to consult a life insurance attorney first. Anything you say to the insurer can be used to justify a denial. A lawyer will protect your rights from the start.