Illinois Life Insurance Lawyer

Life Insurance Lawyers Serving All 102 Illinois Counties

Christian Lassen, Esq. | 25 Years Experience | Hundreds of Millions Recovered

If your life insurance claim was denied in Illinois, you're not alone and you're not without options. At The Lassen Law Firm, we focus exclusively on life insurance litigation and have helped families throughout Illinois recover millions in wrongfully denied death benefits. Whether your case involves a policy lapse, misrepresentation allegation, or a contested beneficiary change, we have the experience to challenge the denial and pursue the full payout.

Led by nationally recognized life insurance attorney Christian Lassen, quoted by The Wall Street Journal and rated 10.0 by AVVO, our firm serves clients in every region of Illinois. We handle denied life insurance claims in all 102 counties and never charge a fee unless we recover for you.

Denied Life Insurance Claim in Illinois? You’re Not Alone.

Too often in Illinois, life insurance companies reject valid claims, using technicalities or vague policy language to avoid payment. If you’re dealing with a life insurance denial in Illinois, The Lassen Law Firm can help you contest the insurer’s decision and work to recover the benefits intended for you.

In Illinois, life insurance beneficiary disputes often involve questions about validity, undue influence, or missing policy updates. If you're involved in a life insurance beneficiary dispute in Illinois, The Lassen Law Firm can help you assert your legal rights and fight for the payout you were meant to receive.

Life insurance companies in Illinois often file an interpleader lawsuit in Illinois when multiple parties claim the same death benefit, leaving it to the court to decide who is entitled to the funds.

Life insurance claims in Illinois can quickly become complicated, especially when faced with denied benefits or bad faith insurance practices. At The Lassen Law Firm, we are dedicated to helping clients across the Prairie State recover the payouts they deserve. Our Illinois life insurance lawyers serve clients across the state.

As life insurance attorneys handling cases nationwide, our record speaks for itself, with hundreds of millions in policies recovered. At The Lassen Law Firm, we combine legal expertise with personalized support to ensure justice is served for our clients. Call now for a free consultation to see if we can help you recover your life insurance benefits. No obligation.

Unlike other firms, The Lassen Law Firm exclusively handles denied life insurance claims. With 25 years of experience in this niche, we are recognized as top experts in the field. Our lawyers have earned prestigious awards, including membership in the Multi-Million Dollar Advocates Forum and a 10.0 rating on AVVO. No other firm offers the same level of dedication and expertise in denied life insurance cases.

Denied Life Insurance Benefits in Illinois? Legal Help Is Available

Life insurance exists to protect families when they need it most. Yet in Illinois, beneficiaries often encounter resistance when they try to claim the benefits their loved ones paid for. Insurance companies frequently deny, delay, or undervalue legitimate life insurance claims, using complex policy language or technical grounds to avoid payment. If your life insurance claim was denied, our experienced Illinois life insurance attorneys are ready to advocate on your behalf. Denied accidental death benefit claims in Illinois are more common than many realize, but with the right legal help, they can often be successfully challenged.

Insurers are well-versed in finding ways to limit payouts, but that does not mean their decisions are beyond challenge. Under Illinois law, policyholders and their beneficiaries have rights, and with knowledgeable legal representation, many denials can be reversed. We provide free consultations and only collect fees if we succeed in recovering benefits for you.

The Impact of the Contestability Period on Illinois Life Insurance Claims

In Illinois, life insurance policies generally include a two-year contestability period following issuance. During this timeframe, insurers may investigate and deny claims based on alleged misrepresentations made during the application process. However, after two years, the insurer’s ability to rescind coverage becomes extremely limited unless they can establish intentional fraud.

Not every misstatement supports denial. Illinois law requires that a misrepresentation must be material, it must have significantly influenced the insurer’s decision to issue the policy or set its terms. Honest mistakes, misunderstandings, or trivial inaccuracies typically do not justify claim denial after a loss.

If your claim was denied based on contestability grounds, it is crucial to have a life insurance attorney review the circumstances and determine whether the insurer’s actions are legally defensible.

Why Life Insurance Claims Are Denied in Illinois

While every denial is unique, insurers often rely on familiar tactics to justify withholding life insurance benefits. Some of the most common reasons for claim denials in Illinois include:

Material Misrepresentation on Application

Insurance companies may claim that the insured omitted or misstated important information such as medical history, prescription drug use, or high-risk activities.

Policy Lapses from Alleged Nonpayment

In Illinois, insurance companies frequently deny claims by citing missed premiums, but the alleged policy lapse for nonpayment is often contradicted by payment records or notice issues.

Deaths Covered by Policy Exclusions

Deaths resulting from suicide within the exclusion period, participation in criminal acts, or certain hazardous activities may be excluded depending on policy language.

Disputes over Beneficiary Status

Legal battles over contested beneficiary designations can cause insurers to delay or deny payment until the courts resolve the matter.

Employer Errors in Group Plans

Improper enrollment, administrative mistakes, or misinformation about coverage can lead to unfair denials in employer-sponsored group life policies.

Deaths under Criminal Investigation

If the death is suspicious, insurers often delay payment while awaiting investigation results, but excessive delays may be challenged.

Just because an insurer cites one of these reasons does not mean the denial is legally valid. A careful review of the policy and the facts often reveals grounds to contest the decision.

How to Respond After Receiving a Life Insurance Claim Denial in Illinois

After receiving a denial notice, the steps you take are critical to protecting your rights. You should:

• Request and retain the full life insurance policy, application, and all related documents.
• Analyze the denial letter carefully and keep detailed notes regarding the insurer’s stated reasons.
• Preserve all written communication and records of conversations with the insurer.
• Avoid making further statements or submitting additional documents without obtaining legal advice.
• Consult an Illinois life insurance attorney promptly to discuss your options for appeal or litigation.

Strict time limits often apply, especially if your policy is governed by ERISA rules for employer-sponsored plans. Early action is essential to preserving your claim.

How Our Illinois Life Insurance Attorneys Assist Beneficiaries

Challenging a denied life insurance claim requires strategic legal action. Our firm is committed to representing beneficiaries across Illinois who have been wrongfully denied payment. When you work with us, we will:

• Conduct a full review of the policy language, application materials, and denial correspondence.
• Identify and expose flaws in the insurer’s denial rationale.
• Build a persuasive case through detailed investigation and analysis.
• Handle negotiations and appeals directly with the insurer.
• Pursue litigation aggressively if voluntary payment is not forthcoming.
• Seek damages for bad faith conduct if the insurer violated Illinois insurance law.

We understand the stakes involved when a family’s financial future is on the line. Our approach is thorough, strategic, and designed to maximize recovery for our clients as efficiently as possible.

Federal insurance programs like SGLI and FEGLI often result in claim denials due to administrative delays or incorrect processing. We help Illinois families pursue denied Servicemembers' Group Life Insurance claims and denied FEGLI benefits when the government fails to honor its obligations.

If your life insurance was offered through your workplace, it may be governed by ERISA. Our firm assists Illinois clients in appealing denied ERISA life insurance claims and works to ensure compliance with all federal requirements during the appeal process.

Illinois Denied Life Insurance Claims: Answers to Common Questions

What should I do if my life insurance claim is denied in Illinois?

Contact an experienced Illinois life insurance lawyer immediately. We recently helped a woman in Naperville recover her late husband's payout after an insurer wrongfully cited a vague "health misstatement."

How should I respond to a life insurance interpleader lawsuit in Illinois?

Respond immediately with legal help. We defended a son in Peoria whose stepmother also claimed the benefit, ensuring he kept his rightful share through court proceedings.

Can a life insurance beneficiary dispute in Illinois be resolved in my favor?

Yes. In one case, we proved a last-minute beneficiary change favoring a caretaker in Rockford was the result of undue influence and reinstated the insured’s daughter as beneficiary.

Why would an accidental death and dismemberment (AD&D) claim be denied in Illinois?

Insurers often blame preexisting illnesses or alcohol. We overturned a denial where a drowning was wrongly blamed on alleged heart disease without sufficient medical proof.

Is policy lapse a valid reason to deny a claim in Illinois?

It can be, but we recently reversed a denial where the insurer never sent a required premium lapse notice to the insured’s updated address in Evanston.

Can an application misrepresentation lead to a denied life insurance claim in Illinois?

Only if intentional and material. We disputed a denial where a policyholder forgot to mention mild asthma that had nothing to do with their accidental death.

Can alcohol exclusions in Illinois life insurance policies be used to deny claims?

Sometimes. We fought a denial where trace alcohol in the bloodstream had no causal link to the fatal car crash and secured full payment.

What are my options if my ERISA-governed life insurance was denied in Illinois?

You get only one appeal. We successfully appealed a Chicago hospital employee’s group life insurance denial by thoroughly compiling medical evidence and expert reports.

How can I contest a claim denial during the contestability period in Illinois?

Insurers must still prove material misstatements. We overturned a denial where the insurer challenged a typo on a medication name unrelated to the insured’s death.

My denial was based on Illinois law, do I still have a case?

Often yes. We countered an insurer’s wrongful reliance on Illinois statute 755 ILCS 5/24-4 to deny a claim, recovering the full payout for our client.

Which Illinois life insurance companies deny the most claims?

We've seen frequent denials from State Farm (Bloomington), Allstate (Northbrook), and Country Financial. We've successfully challenged all three.

Does Illinois law revoke life insurance benefits for ex-spouses after divorce?

Yes. We enforced this law in Springfield, blocking an ex-husband from collecting after a divorce decree had been finalized years earlier.

Is Illinois a community property state, and does that affect life insurance payouts?

No, but we helped a surviving spouse in Aurora claim part of a policy where marital funds had been used to pay premiums over several years.

Can a will override the life insurance beneficiary listed in the policy in Illinois?

No. We blocked an estate executor’s attempt to redirect life insurance proceeds contrary to the named beneficiary.

What if the policyholder died while traveling or living outside the U.S.?

We successfully proved a death in Italy was covered, despite the insurer attempting to deny based on vague "foreign death" clauses.

Can I challenge a change in beneficiary made shortly before the insured’s death?

Yes. We recently reinstated a nephew as beneficiary in Quincy after a suspicious change named a neighbor just days before the insured’s death.

Is there a legal time limit for insurers to pay claims in Illinois?

Yes. Delays over 30 days without justification can result in penalties. We secured interest payments for a client whose claim dragged for nearly five months.

Why would a clearly accidental death be denied under an AD&D policy?

Insurers often blame "natural causes." We overturned a denial where a fall from a ladder was blamed on "weak bones" instead of acknowledging the accident.

What if the insurance agent filled out the application incorrectly?

If the agent’s error misled the policyholder, the insurer may still owe the benefit. We recently won a case involving an improperly completed application in Schaumburg.

Can I sue for bad faith denial of a life insurance claim in Illinois?

Yes. We successfully sued an insurer that repeatedly delayed a payout without a valid reason, securing both the death benefit and punitive damages.

How long does a suicide clause apply in Illinois life insurance policies?

Typically two years. We successfully contested a misapplied suicide exclusion where the death occurred four years after the policy was issued.

Are group life insurance policies from Illinois employers subject to ERISA?

Yes. We handle ERISA appeals regularly, including winning a reversal for a denied claim involving a Downers Grove manufacturing employee.

Can an undisclosed health issue result in claim denial in Illinois?

Only if intentionally concealed and relevant. We fought off a denial where the insured failed to mention mild seasonal allergies irrelevant to their accidental death.

What happens when there is no beneficiary listed on the policy?

The proceeds usually pass to the estate. We helped a family in Decatur navigate probate and recover a six-figure life insurance payout.

Is it possible to contest a forged or altered beneficiary form?

Yes. We uncovered a forged beneficiary change in Joliet and restored the original family beneficiary through court action.

Can a life insurance policy be canceled without notifying the insured?

No. We reversed a cancellation after showing that the insurer failed to mail notice properly before declaring the policy lapsed.

Do union-sponsored life insurance policies have special rules in Illinois?

Yes. We’ve helped union members appeal denials involving policies from teachers’ unions and local trade associations throughout Illinois.

If I’m a co-beneficiary, am I entitled to part of the benefit?

Yes. We protected a co-beneficiary’s half-share after the other named party tried to claim the full payout for themselves.

What if the insured disappeared and was later presumed dead in Illinois?

Once the court issues a death presumption, we help file claims. We handled a successful case after a missing person was declared deceased following a hiking trip in Colorado.

Can I still appeal if months have passed since the denial?

It depends. We recently reopened a case after six months by showing the insurer failed to properly notify the beneficiary of appeal rights.

Can vague or unclear policy terms lead to wrongful denials?

Yes. Under Illinois law, ambiguity is interpreted in favor of the beneficiary. We successfully used this rule to overturn a denial based on confusing coverage definitions.

Can a child be named as the life insurance beneficiary in Illinois?

Yes, but minors require guardianship arrangements. We helped a family in Rock Island establish a custodial account to safeguard the funds until the child reached adulthood.

What if several people claim the insured promised them the benefit?

Only the written designation governs. We defended the rightful beneficiary when others cited vague verbal promises made by the insured.

Can insurers deny claims based on involvement in a crime or illegal activity?

Only if the policy clearly excludes such risks. We overturned a denial after proving that a traffic citation did not amount to "criminal activity" under policy terms.

How long do I have to challenge a denied life insurance claim in Illinois?

Time limits vary, but ERISA plans typically require action within 180 days, while individual policies allow more flexibility. It’s critical to contact a lawyer immediately after a denial.

Navigating Denied Life Insurance Claims in Illinois: Real Cases and Local Insight

Illinois life insurance claim denials often hinge on technicalities buried in the fine print or errors by employers and agents. We’ve represented clients across the state, from Cook County to downstate communities like Belleville and Quincy, where local court dynamics and insurance practices vary widely. In one Chicago case, a $400,000 denial was issued due to a supposed policy lapse. After reviewing the payment history, we discovered the insurer had misapplied electronic payments. We filed suit in the U.S. District Court for the Northern District of Illinois and secured a full reversal before trial.

Beneficiary disputes are common in Illinois, especially when policies are contested after divorce or remarriage. In DuPage County, we represented a daughter who was removed as beneficiary weeks before her father passed. The insurer sided with the new spouse. Through discovery, we uncovered emails proving the change was not properly authorized, and the claim was paid in full.

Illinois is not a community property state, which can surprise surviving spouses who aren’t listed on the policy. In Rockford, a widow was denied benefits after her husband’s sudden death, but we proved she had a legal marital interest based on a court-approved separation agreement that required him to maintain coverage. The case settled favorably after mediation.

ERISA governs most employer-provided policies in Illinois, especially in cities like Springfield and Naperville where many residents are covered through health systems, universities, or manufacturing employers. In one ERISA case out of Peoria, an employee was denied AD&D benefits after a workplace accident. The insurer claimed the death wasn’t “accidental” due to a preexisting condition. We appealed the decision using autopsy and expert reports and won a $325,000 payout.

In interpleader lawsuits filed in Illinois federal courts, including the Central and Southern Districts, we’ve helped clients sort out complex multi-claimant cases. When two adult children and a new spouse all claimed rights to a $250,000 benefit, we resolved the dispute quickly and privately, avoiding litigation costs and family strife.

Denied life insurance claims in Illinois require swift and informed action. Whether you're facing delays, disputes, or exclusions, we are here to help beneficiaries statewide recover what is rightfully theirs.

Contact us today for a free consultation.

Written & Reviewed by Christian Lassen, Esq., Nationally recognized life insurance lawyer: 25 years experience, hundreds of millions recovered.  Quoted in The Wall Street Journal ( May 17, 2025).

Last reviewed: June 14, 2025 | Contact 800-330-2274