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Policy Misinterpretation Leads to Denied Life Insurance Claims

Life insurance is sold as a safety net, a straightforward promise that loved ones will be financially protected after a loss. In reality, many claims are denied not because the policy was invalid, but because the insurer applied an aggressive or distorted interpretation of policy language. We regularly see families denied benefits by companies like Prudential, MetLife, Globe Life, and Corebridge Financial based on technical readings of terms that no ordinary policyholder could reasonably anticipate.

These denials often rely on gray areas buried deep in the policy or application, where the insurer’s interpretation favors nonpayment rather than the insured’s intent.

How Insurers Stretch Terms Like “Material Misrepresentation”

One of the most abused concepts in life insurance denials is material misrepresentation. In theory, this applies when an applicant provides false information that would have changed the insurer’s decision to issue the policy. In practice, insurers frequently stretch this definition far beyond its purpose.

We see denials based on issues such as:

• Minor weight or height discrepancies
• Forgetting a routine doctor visit years earlier
• Failing to list a short course of medication with no ongoing relevance
• Answering broad questions in good faith that are later reinterpreted narrowly

Even when the insured had no intent to mislead and the issue had nothing to do with the cause of death, insurers often claim the error was material and attempt to void the entire policy.

Pre-Existing Conditions Used as a Backdoor Denial Tool

The term pre-existing condition is another frequent source of abuse. Insurers often comb through years of medical records after a death, searching for any diagnosis that was not perfectly disclosed. They then argue that the policy should never have been issued.

This tactic is especially common during the contestability period, usually the first two years after the policy is issued. While contestability clauses are meant to prevent fraud, insurers increasingly use them to deny legitimate claims based on unrelated or insignificant medical history. Courts often reject these arguments when the condition had no causal connection to the death, but many families never get that far without legal help.

Suicide Clauses and Ambiguous Causes of Death

Suicide exclusions are standard in life insurance policies, typically applying only during the first two years. Problems arise when insurers label unclear deaths as suicide to trigger the exclusion.

Common examples include:

• Accidental overdoses
• Falls with limited witness evidence
• Single vehicle accidents
• Mixed toxicology results

Rather than proving suicide, insurers sometimes rely on speculation and force families to disprove it. This shifts the burden unfairly onto grieving beneficiaries who may not have immediate access to complete medical or investigative records.

How Policy Language Gets Twisted Against Beneficiaries

Insurance companies employ experienced adjusters and legal teams trained to read policies in the narrowest way possible. Policyholders, by contrast, typically rely on plain language summaries and reasonable expectations.

We frequently see denials based on interpretations such as:

• A “non-smoker” label challenged due to occasional nicotine use years earlier
• Mental health questions reinterpreted to include brief or resolved treatment
• Lifestyle disclosures stretched to include activities never connected to the death

These arguments ignore the purpose of life insurance and focus instead on technical traps that only surface after a claim is filed.

Why Legal Representation Changes the Outcome

When a claim is denied due to policy misinterpretation, appealing without legal support often fails. Insurers rarely reverse themselves unless pressured with clear legal analysis and the threat of litigation.

Our attorneys focus on:

• Reading the policy as a court would, not as the insurer prefers
• Identifying ambiguous language that must be interpreted in favor of the beneficiary
• Proving lack of materiality and lack of intent to deceive
• Comparing the denial rationale to controlling state law
• Pursuing bad faith claims when insurers overreach

Many denials collapse once insurers are forced to defend their interpretation under legal scrutiny.

We Handle Life Insurance Disputes Based on Misapplied Policy Language

Our firm has successfully overturned denials involving misrepresentation allegations, contestability investigations, suicide clause disputes, and pre-existing condition arguments. Whether the insurer relied on vague language, strained definitions, or selective readings of the application, we know how to dismantle those positions and force payment.

If your life insurance claim was denied because the insurer “interpreted” the policy in a way that feels unfair or unexpected, you should not assume they are right. These cases are often winnable with the right legal strategy.

Do You Need a Life Insurance Lawyer?

Please contact us for a free legal review of your claim. Every submission is confidential and reviewed by an experienced life insurance attorney, not a call center or case manager. There is no fee unless we win.

We handle denied and delayed claims, beneficiary disputes, ERISA denials, interpleader lawsuits, and policy lapse cases.

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