Life Insurance Lawyer Illinois

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.

Experienced Life Insurance Lawyers Illinois: The Lassen Law Firm

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, including Chicago, Aurora Ill, Rockford Ill, Joliet and Naperville.

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 24 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.

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 Misrepresentations in the 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: Missed premium payments can lead to lapse claims, but Illinois insurers must follow strict notice procedures before terminating coverage.

  • 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 Life Insurance 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.

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.

Are life insurance proceeds protected from creditors in Illinois?

Yes, if paid to a named beneficiary. We defended a payout against creditor claims after a creditor tried to intercept a life insurance benefit.

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 canceled policy be reinstated if the insurer failed to give proper notice?

Yes. We reinstated a lapsed policy after showing the insurer didn’t properly notify the insured under Illinois notice requirements.

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.

2025 Illinois Denied Life Insurance Claims: settlements & verdicts

Below are examples of Illinois life insurance claims successfully resolved.


  • National Benefit life coronavirus denial $77,000.00
  • Trustmark Life felony exclusion we won $50,000.00
  • Principal Life COVID-19 denial resolved $91,000.00
  • Columbian Mutual sickness exclusion $84,000.00
  • Denied VGLI claim beneficiaries $405,250.00
  • Accidental Death & Dismemberment $900,000.00
  • Scotia Life lapse of premiums resolved $60,000.00
  • Prosperity life prescription drug denial $89,000.00
  • Lombard autoerotic asphyxiation death $209,000.00
  • American Equity felony gun denial $155,000.00
  • Birla Sun emergency room visit records $67,000.00
  • Royal Neighbors Life long lapse of payment $104,000.00
  • Anthem autoerotic asphyxiation death $409,000.00
  • AARP denial due to coronavirus resolved $112,000.00
  • US Financial denied life claim we won $229,000.00
  • Term Life lapse of premiums resolved $75,000.00
  • AD&D denial alcohol car crash we won $80,000.00
  • Paul Reverse material misrepresentation $67,000.00
  • United Life insurable interest issue $33,000.00
  • Manhattan Life long delay medical records $109,000.00
  • Costco Life insurance claim denied won $11,000.00
  • First National COVID-19 exclusion won $251,000.00
  • Midland National suicide exclusion $316,400.00
  • SGLI resolution of competing beneficiaries $400,000.00
  • Trans Premier material misrepresentation $281,000.00
  • Navy Federal alcohol exclusion denial $112,800.00
  • Denied life insurance claim Illinois $3,000,000.00
  • Denied FEGLI claim only took a week to win $149,000.00
  • United Republic delay of claim resolved $506,300.00
  • Family Life policy not in force allegedly $106,000.00
  • Peoria ambiguous policy language case $545,000.00
  • Illinois divorce and life insurance $720,000.00
  • Elgin no coverage at the time of death $490,000.00
  • RiverSource fentanyl exclusion case $220,000.00
  • Denied SGLI claim due to dispute $407,210.00
  • Rockford competing beneficiary claimants $605,000.00
  • Naperville accidental death and dismemberment $2,100,000.00
  • Aurora mistake on the application won $378,000.00
  • Mass shooting death $212,100.00
  • Denied SGLI claim change of beneficiary $401,000.00
  • Inter-American delay of benefits we got $505,000.00
  • Joliet divorce court orders settlement $514,000.00
  • Illinois bad faith life insurance claim $867,000.00
  • Mass shooting death exclusion $125,000.00
  • Springfield alleged fraud resolved $934,000.00
  • Prudential AD&D policy accidental death $529,300.00
  • Cicero denial of benefits medical records $711,000.00
  • Denied AD&D claim due to stabbing $890,000.00
  • Mony misrepresentation at renewal $102,750.00
  • Globe denied due to foreign death $108,600.00
  • Chicago denied life insurance claim $5,000,000.00
  • Southern Farm Bureau prescription drug $273,000.00
  • Guardian Life autoerotic asphyxiation death $314,200.00
  • Illinois denied life insurance claim $1,500,000.00
  • Banner application deceptively worded $112,900.00
  • Northwestern interpleader case resolved $402,740.00

Every denied claim is unique. In Illinois, we know how to maximize your chance of recovering the full life insurance payout.

Legal References – Illinois

  • Illinois Contestability Clause Law: Under 215 ILCS 5/224(2)(B), life insurance policies in Illinois become incontestable after two years from the date of issue, except for nonpayment of premiums. During the contestability period, insurers may deny claims based on material misrepresentations made in the application.​

  • Automatic Revocation of Ex-Spouse Beneficiaries: According to 750 ILCS 5/503(b-5), a divorce automatically revokes a former spouse’s designation as a beneficiary on a life insurance policy, unless the policyholder reaffirms the designation after the divorce or the judgment of dissolution expressly provides otherwise.

  • Equitable Distribution Laws: Illinois is an equitable distribution state, not a community property state. This means that marital property, including life insurance policies acquired during the marriage, is divided equitably—not necessarily equally—based on various factors.​

  • ERISA & Group Policies: Employer-provided life insurance policies governed by ERISA (Employee Retirement Income Security Act of 1974) may preempt Illinois state laws in cases involving contested beneficiaries, including disputes with former spouses.

For more information on insurance regulations and consumer protections in Illinois, you can visit the Illinois Department of Insurance or explore nationwide insurance resources through the National Association of Insurance Commissioners (NAIC).

The Lassen Law Firm is a national practice focused exclusively on life insurance litigation. Founded by Christian Lassen, Esq., the firm has recovered hundreds of millions for clients in all 50 states. All website content is written or reviewed by Mr. Lassen personally to ensure accuracy and authority.