Sarah was devastated when Prudential denied the life insurance claim she filed after her father Robert’s sudden death. Robert had battled depression privately for years but had not disclosed this diagnosis when applying for a life insurance policy. After his passing, the insurer pointed to his omission as the reason to void the contract, claiming material misrepresentation. While Sarah and her siblings believed the policy was secure, they were met with a crushing rejection. Our firm took the case, closely examining the policy language, the application, and Robert’s medical history. We argued that Robert had no intent to deceive and that his depression was not material to the cause of death. Ultimately, the denial was reversed and Sarah’s family received the benefits Robert had intended for them. Cases like these show how insurers use mental health disclosures as a tool to avoid paying claims—and why legal advocacy is often essential.
Mental Illness and Life Insurance: What You Need to Know
Mental health diagnoses can complicate both the application process and claim payouts for life insurance. While these conditions are common and treatable, insurers often treat them as red flags during underwriting. Policyholders with histories of depression, anxiety, PTSD, or other conditions may be subject to higher premiums or face the possibility of denial altogether. In some cases, the fear of discrimination leads applicants to withhold this information. Unfortunately, that omission—no matter how understandable—can later be used against grieving families.
Common Denial Tactics in Mental Health-Related Life Insurance Claims
Insurers rely on several strategies to deny claims connected to mental illness. Some are rooted in application omissions, others in the cause of death. Understanding the most common tactics can help you identify when a denial might be wrongfully issued:
Non-Disclosure: If the insured failed to report a history of mental illness, even years prior, insurers may allege material misrepresentation. They argue that the application was incomplete and that the policy would not have been issued if full disclosure had been made.
Contestability Period Denials: If death occurs within the first two years of the policy (the contestability period), insurers have the right to closely scrutinize the application and medical history. They often use this time to retroactively identify discrepancies and void the policy.
Suicide Clauses: Most life insurance policies include a suicide exclusion during the first two years. If the insured dies by suicide, the claim may be denied outright—even if the policy was otherwise valid. In some cases, insurers may label an ambiguous death as suicide simply to invoke this exclusion.
Mental Health as a Pre-Existing Condition: Some policies may contain exclusions for deaths linked to pre-existing conditions. If mental illness played any role, even indirectly, insurers may argue the death was excluded by the policy.
The Hidden Bias in Life Insurance Underwriting
Mental health stigma persists within the life insurance industry. While insurers claim to treat mental illness like any other health condition, they often scrutinize it more heavily than comparable physical ailments. People who experience mild or well-managed symptoms are frequently lumped into high-risk categories, regardless of their actual health outlook. As a result, some applicants choose not to disclose past therapy or medication—decisions that later jeopardize their family’s financial protection. We’ve seen insurers deny claims for failure to disclose therapy visits from over a decade ago, even when the death had no connection to mental health. These practices are unfair and legally challengeable.
Why Legal Support Is Critical After a Mental Health-Based Denial
If a claim has been denied due to mental illness, it’s not the end of the road. Legal professionals who understand life insurance litigation can examine the details and determine whether the insurer’s position is legitimate. Our firm specializes in:
Assessing whether the alleged non-disclosure was material to the cause of death
Determining if the suicide exclusion has expired or was misapplied
Investigating whether the insurer asked vague or misleading questions on the application
Challenging biased underwriting that unfairly targets mental illness
Forcing compliance with bad faith insurance laws when insurers delay or deny without valid cause
We’ve helped families across the country recover denied benefits, even after initial rejections citing mental health. Whether the denial is based on an old diagnosis, an unclear death, or a technicality in the application, our attorneys know how to fight—and win.
Let Us Help You Recover the Life Insurance Benefits You Deserve
Mental illness should not be used as an excuse to deny grieving families the financial security their loved one intended to leave behind. If your life insurance claim was denied due to an alleged misrepresentation or exclusion related to mental health, reach out to our experienced legal team. We fight insurers like Prudential, New York Life, AIG, Mutual of Omaha, and others when they attempt to avoid payment based on outdated or unfair standards. If you need life insurance claim help in Colorado call us.