Many beneficiaries expect a straightforward process after the policyholder’s death—only to find the insurer pushing back with vague reasoning, legal jargon, or outright refusal. While life insurance companies claim to serve policyholders, their underlying motive is profit. That means they are often quick to reject claims, even when those claims are entirely valid. If you’ve been notified that your life insurance claim has been denied, taking immediate and informed action can make all the difference in recovering the benefits you’re rightfully owed.
Start With the Written Denial Letter
If you receive a denial verbally—such as during a phone call—insist on a written explanation. This written notice is critical. It should outline the specific reasons for denial, refer to relevant sections of the life insurance policy, and cite any applicable laws or exclusions being used as justification. In many cases, denial letters are vague, using generalized statements like “material misrepresentation” or “policy lapse” without meaningful detail. Demand clarity. The written denial should also provide instructions on how to dispute the claim or appeal the decision, which may include time-sensitive steps. If the letter is incomplete or confusing, consult a life insurance attorney immediately.
Understand the Denial and Its Legal Context
Knowing why a claim was denied is essential, but understanding whether the denial is valid is even more important. Life insurance companies rely on a variety of common reasons to deny claims—some of which are legitimate, but many of which are not. These may include:
Alleged errors on the insured’s application
Missed premium payments resulting in a lapse in coverage
Failure to convert group coverage to individual coverage upon job loss or retirement
Deaths that occur during allegedly excluded activities
Claims denied under the contestability clause (usually within the first two policy years)
Beneficiary disputes involving ex-spouses or family members
Claims dismissed due to ongoing investigations or incomplete paperwork
While some denials are based on policy terms, many are rooted in aggressive tactics or misapplied rules. Our law firm frequently uncovers that insurers deny claims prematurely or without conducting a full investigation. In several cases, we’ve demonstrated that the insured did comply with all policy requirements and that the insurer wrongfully denied payment.
Why Legal Representation Is Crucial in Denied Life Insurance Claims
Challenging a denied life insurance claim without legal support is like entering a boxing ring blindfolded. The insurance company has a team of lawyers working to protect its bottom line—and so should you. At The Lassen Law Firm, we represent life insurance beneficiaries across the country on a contingency basis, meaning we don’t get paid unless we win your case. Whether your claim is governed by state law, ERISA (for employer-provided group policies), or FEGLI/SGLI regulations for federal employees and military service members, we have the experience and resources to pursue a favorable outcome.
Many beneficiaries are unaware that group life insurance policies—especially those provided by an employer—fall under federal ERISA rules. These claims are subject to strict administrative procedures and short appeal windows. In such cases, submitting an incomplete or poorly argued appeal can forfeit your right to bring a lawsuit later. That’s why it’s imperative to hire an attorney before submitting an appeal or attempting to deal with the insurer directly.
Common Mistakes That Hurt Your Case
Failing to request a complete denial letter with all cited reasons
Submitting incomplete appeal letters without legal review
Relying on conversations with insurance representatives rather than documented evidence
Ignoring critical deadlines listed in policy documents or federal regulations
Assuming the insurer’s explanation is legally sound without verifying it with an attorney
The longer you wait to challenge a denial, the more difficult it becomes to recover benefits. Insurers know this—and often delay processing claims in hopes that beneficiaries will give up. Don’t let that happen to you. With legal help, many denied claims can be reversed without ever stepping into a courtroom.
Let Our Firm Fight for Your Benefits
Our law firm handles every type of life insurance claim denial: from contestability-based rejections and material misrepresentation allegations to policy lapses, beneficiary disputes, interpleader actions, and ERISA-regulated claims. We also represent beneficiaries in denied FEGLI (Federal Employees' Group Life Insurance) and SGLI (Servicemembers' Group Life Insurance) claims. Whether your case involves a private insurer, employer-sponsored coverage, or a government-administered policy, we know how to challenge the denial and pursue payment quickly. If you need help with life insurance disputes in Nevada call us.
FAQ: Denied Life Insurance Claims
What should I do immediately after a life insurance claim is denied? Request a detailed written denial letter from the insurance company. This document is crucial for determining your next steps and forms the foundation for any appeal or legal action.
Why do life insurance claims get denied? Common reasons include application errors, policy lapses, missed premium payments, death during an excluded activity, misrepresentation, or disputes over beneficiary designation. Many denials are based on flawed interpretations or insufficient evidence.
Can I appeal a denied life insurance claim? Yes, and you should—especially with the help of a qualified life insurance attorney. Appeals require strong legal arguments, supporting documents, and must often be filed within specific deadlines.
Is there a time limit to appeal a denied claim? Yes. For ERISA-regulated group life insurance policies, you typically have 60 days to file an appeal. Missing this deadline can permanently forfeit your right to recover benefits.
Do I need a lawyer to challenge the denial? Absolutely. Insurance companies have legal teams evaluating your claim from day one. Without an attorney, you are at a significant disadvantage.
What happens if the insured made a mistake on their application? If the mistake was not material or not intentional, the insurer may still be required to pay. We regularly challenge denials based on minor or irrelevant errors.
Can my claim be denied due to a beneficiary dispute? It can be delayed or subjected to interpleader litigation. We represent beneficiaries in resolving disputes and proving rightful entitlement to policy proceeds.
Are group life insurance claims harder to challenge? They can be, especially because they fall under ERISA. That’s why it’s critical to work with attorneys who understand both ERISA procedures and life insurance law.
How long does it take to resolve a denied claim? Some appeals are resolved in weeks, while others may require litigation. With the right legal team, many cases can be resolved faster and without unnecessary delays.
Can I still recover benefits if the policy lapsed? Possibly. If the lapse was due to employer error, mailing issues, or grace period miscalculations, we may be able to reinstate the policy and recover the benefit.