After a loved one dies, families expect a life insurance claim to move forward within a reasonable period of time. Instead, many beneficiaries receive a short response from the insurer stating that payment cannot be issued because the death is “under active investigation.”
That phrase sounds official, but it is also one of the most frequently misused justifications for delaying life insurance benefits.
An investigation does not automatically allow an insurer to delay payment indefinitely.
What Insurers Usually Mean by “Active Investigation”
When insurers cite an active investigation, they are often referring to circumstances such as:
• A medical examiner has not issued a final report
• Toxicology testing is still pending
• Law enforcement has not formally closed its file
• The death certificate lists the cause or manner of death as pending
• The insurer claims it is conducting an internal review
In many cases, the insurer is not conducting any meaningful investigation at all. It is simply waiting on third parties such as a coroner or police department and using that status as a reason to pause the claim.
Investigations Can Take Far Longer Than Insurance Timelines
Medical examiner offices and law enforcement agencies operate on their own timelines. Toxicology testing alone can take several months. Some investigations remain technically open for a year or more even when no criminal conduct is suspected.
Life insurance companies often take advantage of this reality. Instead of evaluating the claim based on available evidence, they treat the open status as a justification to do nothing.
What begins as a temporary delay quietly turns into an indefinite one.
An Open Investigation Is Not a Denial Justification
Life insurance policies do not require that every investigation be fully resolved before benefits are paid. Insurers are permitted to investigate, but they are also required to act reasonably and in good faith.
An open investigation does not automatically mean:
• The death was a suicide
• Alcohol or drugs caused the death
• Criminal activity occurred
• A policy exclusion applies
If the available evidence supports coverage, insurers may be required to pay even if certain details remain unresolved.
An investigation is not proof of an exclusion.
How Insurers Use Investigation Status to Stall Claims
In delayed claim cases, we frequently see insurers rely on investigation language to justify inaction. Common tactics include:
• Repeatedly requesting updates that do not exist
• Refusing to provide any projected decision timeline
• Asking for documents that were already submitted
• Expanding the scope of review without explanation
• Ignoring evidence that supports accidental or natural death
These practices are rarely about gathering new information. They are about buying time and avoiding commitment.
When Delay Crosses Into Bad Faith
An insurer’s right to investigate has limits. Delay may become unlawful when the insurer:
• Cannot explain what specific information it still needs
• Continues to delay after receiving clarifying evidence
• Uses investigation status as a blanket excuse
• Refuses to issue partial payments when permitted
• Ignores statutory claim handling deadlines
At that point, the delay itself can violate insurance law. Courts and regulators recognize that investigation language can be abused, especially when it is used to avoid paying valid claims.
Employer Policies and ERISA Claims Are Especially Affected
Employer provided life insurance policies governed by ERISA are particularly vulnerable to investigation delays.
These claims often involve multiple entities such as the insurer, the employer, and a third party administrator. Each party may claim it is waiting on the others before acting.
Meanwhile, beneficiaries receive no benefits and no clear answers.
ERISA deadlines still apply even when an investigation is ongoing. An insurer cannot suspend its obligations indefinitely simply by citing an open file.
What Beneficiaries Should Do When Told the Claim Is Under Investigation
When an insurer delays a claim due to an active investigation, beneficiaries should not assume waiting is required. Practical steps include:
• Requesting a written explanation of what is being investigated
• Asking which specific policy provisions are under review
• Demanding a status update with a projected decision timeline
• Keeping copies of all correspondence and submissions
• Documenting repeated delays or vague responses
Silence benefits the insurer, not the family.
Investigation Delays Are Often Challenged Successfully
Many claims stalled due to investigations are eventually paid, but only after pressure is applied. Insurers frequently rely on delay because they expect families to wait, become discouraged, or give up.
When beneficiaries challenge investigation-based delays, demand accountability, and enforce timelines, outcomes often change.
Our firm represents beneficiaries nationwide in delayed and denied life insurance claims involving open investigations, including medical examiner delays, toxicology issues, and law enforcement reviews. We offer free case evaluations and charge no fee unless benefits are recovered.
If your life insurance claim is being delayed because the insurer says the death is under active investigation, you may have more leverage than you realize.