Life insurance companies are increasingly denying claims by arguing that the insured failed to update their contact information. Families are stunned because the insured paid premiums for years, believed the policy was active, and never received any warning that coverage was at risk. Insurers use this tactic to claim the policy lapsed because notices were sent to an old address, outdated email, or disconnected phone number.
This denial strategy is growing rapidly because it allows insurers to avoid paying claims without proving wrongdoing. All they need to show is that they mailed lapse notices to the last address they had on file, even if the insured never saw them.
This guide explains how insurers use outdated contact information to deny claims, why these denials are often improper, and how beneficiaries can challenge them.
How Insurers Use Old Contact Information to Deny Claims
When a policy lapses for nonpayment, insurers must send notices warning the insured that coverage is at risk. If the insured moved, changed email providers, or switched phone numbers, the insurer may claim that the notices were properly sent even if they were never received.
Common denial arguments include:
• The insured failed to update their mailing address • The insured failed to update their email address • The insured failed to update their phone number • The insured did not receive lapse notices because their contact information was outdated • The insurer mailed notices to the last known address and considers that sufficient
Insurers rely on these arguments to claim the policy terminated before death, even when the insured had a long history of timely payments.
Why These Denials Are Often Improper
A denial based on outdated contact information is not automatically valid. Insurers must follow strict notice requirements, and many fail to do so.
Here are the most common reasons these denials collapse under scrutiny.
The insurer did not send notices to all required channels
Many policies require insurers to send notices by mail and email. If they used only one method, the denial may be invalid.
The insurer had updated information but failed to use it
Insurers often have updated addresses in:
• Premium payment records • Online account updates • Beneficiary change forms • Customer service logs • Returned mail notices
If the insurer had access to updated information but ignored it, the denial is improper.
The insurer failed to follow state notice laws
Many states require:
• Multiple notices • Notices sent by certified mail • Notices sent to both the insured and a secondary addressee • A specific number of days before termination
If the insurer missed any step, the lapse may be void.
The insured continued paying premiums
If premiums were drafted from a bank account or payroll, the insurer cannot claim the policy lapsed simply because a notice was missed.
The insurer accepted late premiums without warning
If the insurer accepted payments after the alleged lapse date, the policy may have been reinstated automatically.
How Insurers Build These Denials
Insurers rely on internal records showing:
• Notices mailed to an old address • Returned mail that was never followed up • Emails sent to inactive accounts • Phone calls made to disconnected numbers • System logs showing no response from the insured
They use these records to argue that they fulfilled their obligations, even when the insured never received a single warning.
How Beneficiaries Can Challenge These Denials
These denials are highly challengeable because they depend on strict procedural rules that insurers often fail to follow.
Beneficiaries should take the following steps.
Request the complete claim file
The claim file will show exactly what notices were sent, when they were sent, and how they were delivered.
Obtain premium payment records
Bank statements, payroll records, and insurer billing logs often contradict the insurer’s version of events.
Review state notice requirements
Many states impose strict rules that insurers routinely violate.
Look for evidence of updated contact information
If the insured updated their address anywhere in the insurer’s system, the denial may be invalid.
Examine the timing of the alleged lapse
Insurers often miscalculate grace periods or ignore payments made during the grace period.
When the Denial Becomes Bad Faith
A denial may cross into bad faith when the insurer:
• Ignores updated contact information • Sends notices to an address they know is invalid • Fails to send required secondary notices • Miscalculates grace periods • Accepts premiums after the alleged lapse • Refuses to provide the claim file
These behaviors can support a claim for additional damages.
Why Families Should Not Give Up
A missed notice does not automatically void a life insurance policy. Insurers must prove they followed every procedural requirement, and many cannot. Denials based on outdated contact information often collapse once the insurer’s notice practices are examined.
Families should not accept a denial based on failure to update contact information without a thorough review.