After a loved one dies, beneficiaries expect the life insurance claim to be processed within a reasonable time. Instead, many families are told that payment cannot occur because the death is “under active investigation.”
This phrase is one of the most commonly used and most abused justifications for delaying life insurance payouts.
An investigation does not automatically give an insurer unlimited time to withhold benefits.
What Insurers Mean by “Active Investigation”
Insurance companies often claim an investigation is ongoing when:
• The medical examiner has not finalized findings
• A toxicology report is pending
• Law enforcement has not closed its file
• The cause or manner of death is listed as pending
• The insurer is conducting its own internal review
In many cases, the investigation referenced is not being conducted by the insurer at all.
Investigations Can Drag On for Months or Longer
Medical and law enforcement investigations often take far longer than insurance review timelines. Some cases remain open for months or even years.
Insurers frequently use this open status as justification to delay payment indefinitely, even when no policy exclusion is clearly implicated.
Delay becomes the default outcome rather than a temporary pause.
An Investigation Does Not Equal a Valid Denial
Life insurance policies do not require that every investigation be completed before payment. Insurers are allowed to investigate, but they are also required to act reasonably.
If available evidence supports coverage, insurers may be required to pay even while certain aspects remain unresolved.
An open investigation is not proof of suicide, intoxication, criminal activity, or exclusion.
Common Ways Insurers Use Investigation Status to Stall Claims
We often see insurers:
• Repeatedly request updates that do not exist
• Refuse to provide timelines for decision making
• Ask for documents already submitted
• Expand investigations without explanation
• Ignore evidence that supports accidental or natural death
These tactics wear families down and delay accountability.
When Delay Becomes Bad Faith
An insurer crosses the line when it:
• Fails to explain what information is actually needed
• Continues delaying after receiving clarifying evidence
• Uses investigation status as a blanket excuse
• Refuses to issue partial payments when allowed
• Ignores statutory claim handling deadlines
At that point, delay itself may violate insurance law.
ERISA and Employer Policies Are Especially Vulnerable
Employer provided life insurance policies governed by ERISA often involve layered investigations between insurers, employers, and third party administrators.
Each party may point to the other as the reason payment cannot proceed. Meanwhile, beneficiaries receive no benefits and no clear answers.
ERISA deadlines still apply, even during investigations.
What Beneficiaries Should Do When Told “The Case Is Still Under Investigation”
If a claim is delayed due to an active investigation:
• Ask for a written explanation of what is being investigated
• Request the specific policy provisions being reviewed
• Demand a claim status update with a decision timeline
• Keep copies of all correspondence
• Do not assume waiting is required
Silence and delay benefit the insurer, not the family.
Investigative Delays Are Often Challenged Successfully
Many claims delayed for investigation are eventually paid only after legal pressure is applied. Insurers often rely on delay because they expect beneficiaries to wait or give up.
Our firm represents beneficiaries nationwide in delayed and denied life insurance claims involving open investigations. We offer free case evaluations and charge no fee unless benefits are recovered.
If your life insurance claim is stalled because the insurer says the death is under active investigation, contact us to discuss your options.