$129,000 Denied Life Insurance Claim Successfully Resolved
Our life insurance law firm is proud to announce the successful resolution of a $129,000 life insurance claim that was initially denied. The insurer had attempted to void the policy based on alleged nondisclosure of a high-risk medical condition. After a detailed legal review and a challenge to the insurer's interpretation of the policy, we were able to secure the full payout for our client. This case underscores the importance of understanding what can void a life insurance policy—and what beneficiaries can do when a claim is wrongfully denied.
What Can Void a Life Insurance Policy or Claim?
A life insurance policy can be voided—or a claim denied—if the insurer determines that certain conditions were violated, particularly during the application or contestability period. Insurers rely on these provisions to avoid paying death benefits, especially when they believe the policyholder withheld information or engaged in risky behavior.
Below are the most common reasons a life insurance policy or claim may be voided or denied:
1. Suicide Within the Contestability Period
Most policies include a suicide clause, usually lasting two years. If the policyholder dies by suicide during this period, the insurer may return premiums but deny the death benefit.
2. Misrepresentation or Non-Disclosure
If the policyholder omitted or misrepresented key facts on the application—such as medical conditions, lifestyle habits, or tobacco use—the insurer may void the policy if the death occurs within the contestability window.
3. Criminal Activity or Illegal Acts
A death occurring during the commission of a felony or illegal act—such as robbery or drug trafficking—may fall under policy exclusions.
4. Undisclosed High-Risk Hobbies
If the insured participated in extreme sports (e.g., skydiving, scuba diving, base jumping) without disclosing this during underwriting, the insurer may deny the claim if the death was related to the activity.
5. Substance Abuse or Intoxication
Deaths due to drug overdose, prescription misuse, or alcohol intoxication may be excluded under many policies, especially if linked to criminal conduct or reckless behavior (such as DUI).
6. Non-Payment of Premiums
A policy will lapse if premiums are not paid and the grace period expires. Unless reinstated, a lapsed policy is considered void, even if the insured passes away shortly after the lapse.
7. Pre-Existing Medical Conditions
If the insured failed to disclose a condition such as cancer, heart disease, or diabetes, and later died from a related cause, the insurer may argue that the policy was obtained through fraud or material misrepresentation.
8. Dangerous Occupations
Jobs involving explosives, high-rise construction, or high-risk environments may require additional disclosures. Failure to report these during the application process can result in denial if the occupation contributed to the death.
9. Travel to High-Risk Regions
Some policies exclude deaths that occur while traveling to war zones or regions known for infectious diseases unless prior approval was obtained.
10. Mental Health and Intentional Harm
Failure to disclose psychiatric treatment, a history of self-harm, or suicide attempts may be grounds for denial—especially if the cause of death is determined to be suicide, even after the exclusion period.
11. Hazardous Activities or Reckless Conduct
Deaths from racing, reckless driving, or participating in riots, civil disturbances, or violent protests may fall under activity-based exclusions.
12. Conflicting or Vague Policy Language
Sometimes, policies contain ambiguous exclusions or overlapping clauses. Insurers may try to exploit this vagueness to void coverage, though courts often interpret ambiguities in favor of the beneficiary.
What Should You Do if a Life Insurance Policy Is Voided or a Claim Is Denied?
If your claim was denied or a policy was voided for any of the above reasons, don’t assume the insurer’s decision is final. Insurance companies often misapply exclusions, ignore intent, or fail to provide proper notice.
Here’s how to protect your rights:
Request a written explanation detailing the exact basis for denial
Review the application and policy for inaccuracies or undefined terms
Gather supporting documents, including medical records, death certificates, and communications with the insurer
Consult with a life insurance attorney, especially if the denial involved alleged misrepresentation, suicide, or high-risk activity
Our firm specializes in challenging wrongful denials and voided policies. We have recovered life insurance benefits from AIG, Prudential, Lincoln Financial, Transamerica, Genworth, and many others, even after initial claim denials.
Frequently Asked Questions
What does it mean for a life insurance policy to be “voided”?
A voided policy is treated as if it never existed. This typically happens when the insurer believes the policy was obtained through fraud or material misrepresentation.
Is suicide always excluded from life insurance coverage?
No. Most policies exclude suicide only within the first two years (contestability period). After that, suicide is typically covered unless excluded by specific riders.
Can a claim be denied for drug or alcohol use?
Yes, if the death was directly caused by intoxication or overdose and the policy includes relevant exclusions. However, these clauses must be clearly defined and enforceable.
What if the policyholder forgot to disclose a health issue?
If the omission was unintentional and unrelated to the cause of death, it may not justify denial. Insurers must prove that the misstatement was both material and relevant to the claim.
How long does the contestability period last?
Most policies include a two-year contestability period, during which the insurer can investigate and deny claims for misrepresentation. After this period, the policy is generally incontestable except for non-payment.
Can failure to disclose travel plans void a policy?
Possibly. Some policies exclude coverage for travel to high-risk areas or require notification. However, these provisions are often narrowly interpreted and can be challenged.
Do I need legal help if a claim was denied?
Yes. Insurers frequently deny claims based on questionable interpretations of exclusions. An experienced attorney can analyze the policy, dispute unfair denials, and recover benefits.
Can I appeal a denied life insurance claim?
Absolutely. Most insurers have an internal appeals process. If that fails, you may file a lawsuit to recover the benefit, especially in cases of wrongful denial.
How much does your firm charge to handle denied claims?
We work on a contingency fee basis, meaning you pay nothing unless we recover money for you. We also offer free consultations to evaluate your case.
What if the denial was due to an unpaid premium?
Even in lapsed policy cases, you may have a valid claim—especially if the insurer failed to send proper notice or continued accepting payments after the lapse.