SBLI, which stands for Savings Bank Life Insurance, issues life insurance policies throughout the United States. SBLI originally developed as a life insurance program associated with savings banks, but today it offers a variety of individual life insurance policies including term life insurance, whole life coverage, and simplified issue policies.
When a policyholder dies, beneficiaries must submit a claim to receive the life insurance proceeds. While many claims are paid promptly, some SBLI claims are delayed or denied after the insurer conducts a claim investigation.
Attorney Christian Lassen represents beneficiaries nationwide in disputes involving denied and delayed life insurance claims.
SBLI Life Insurance Policies
SBLI policies are often sold directly to consumers online, through insurance agents, or through financial institutions. The policies may include traditional underwriting, simplified underwriting, or accelerated underwriting depending on the type of policy purchased.
Because of these different underwriting methods, claim investigations sometimes focus on the information provided during the application process and whether the insurer believes the answers were accurate.
Once a claim is filed, the insurer reviews the policy and supporting documentation to determine whether the death benefit should be paid.
Common Reasons SBLI Life Insurance Claims Are Denied
Life insurance claims involving SBLI policies may be denied for several reasons depending on the policy language and the information uncovered during the claim review.
Alleged inaccuracies in the application
Life insurance applications require disclosure of medical history, medications, and other health information. If the insurer believes the insured provided incorrect or incomplete answers, it may attempt to deny the claim.
Example:
The insured answered no to a question about treatment for a particular medical condition, but medical records later show treatment before the policy was issued.
Contestability period investigations
Most life insurance policies contain a two year contestability period that allows the insurer to review the application if death occurs during that time.
Example:
The insured dies during the first year of coverage, prompting the insurer to request several years of medical and prescription records.
Policy lapse disputes
Some claim disputes arise when the insurer claims the policy was not active due to unpaid premiums.
Example:
A premium payment was missed or returned by the bank, and the insurer claims the policy lapsed before the death occurred.
Beneficiary designation disputes
Conflicts sometimes arise when more than one person claims to be the beneficiary or when the beneficiary designation is unclear.
Example:
An earlier beneficiary designation names one family member while a later form submitted to the insurer lists another.
Claim Investigations Conducted by the Insurer
After a claim is submitted, the insurer may review several types of documents before deciding whether the benefit will be paid.
These records may include:
Medical records from physicians and hospitals
Prescription history reports from pharmacy databases
The original life insurance application and underwriting documents
Policy billing and premium payment records
Death certificates and related investigation reports
The insurer uses these materials to determine whether the claim qualifies for payment under the policy terms.
Online Applications and Underwriting Issues
Because many SBLI policies are sold through online applications, disputes sometimes arise about the answers provided during the digital application process.
Applicants may complete the application without fully understanding how certain health questions should be answered. When the insurer later reviews medical records after the insured’s death, it may attempt to deny the claim based on discrepancies between the records and the application.
These disputes can become central issues in a denied claim case.
Legal Help With SBLI Life Insurance Claim Denials
Life insurance disputes involving SBLI policies often require review of the policy terms, the application, and the records relied upon during the claim investigation. Beneficiaries who receive a denial may have options to challenge the insurer’s decision depending on the facts of the case.
The Lassen Law Firm focuses exclusively on life insurance disputes nationwide. Attorney Christian Lassen has more than 25 years of experience representing beneficiaries in denied, delayed, and contested life insurance claims.
If an SBLI life insurance claim has been denied or delayed, legal review can help determine whether the insurer’s decision can be challenged.