Life Insurance Lawyer New Jersey

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


Families in New Jersey often face unexpected resistance from life insurance companies when trying to collect benefits after a loved one’s death. If you're dealing with a life insurance claim denied in New Jersey, The Lassen Law Firm is ready to hold the insurer accountable and fight for the payout you’ve been promised.

In New Jersey, life insurance beneficiary disputes often involve claims of undue influence, outdated designations, or conflicting versions of the policy. If you're involved in a life insurance beneficiary dispute in New Jersey, The Lassen Law Firm can step in to defend your rights and pursue the benefits you're entitled to.

In New Jersey, life insurance companies often rely on an interpleader action in New Jersey when more than one party claims the policy, placing the funds with the court until a judge determines the rightful beneficiary.

Trusted Life Insurance Lawyers in New Jersey: The Lassen Law Firm

Navigating life insurance claims in New Jersey can be complicated, particularly when dealing with denied benefits or bad faith insurance practices. At The Lassen Law Firm, we are committed to helping individuals and families across the Garden State recover the payouts they deserve. Whether you’re in Cherry Hill, Marlton, Princeton, Newark NJ, Jersey City, Paterson, or any other part of New Jersey, we bring trusted legal expertise and personalized attention to every case.

As experienced New Jersey life insurance attorneys handling cases nationwide, we’ve successfully recovered hundreds of millions in policies for our clients. At The Lassen Law Firm, we combine dedication, legal expertise, and compassionate advocacy to deliver justice for the people we serve. 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.

Life Insurance Claim Denied in New Jersey? We’ll Stand Up for Your Rights

Life insurance is meant to provide security and peace of mind for families, not create additional hardship after a loss. Yet in New Jersey, many beneficiaries face unexpected denials, delays, or underpayments when trying to collect life insurance proceeds. If your claim has been denied, you have strong rights under New Jersey law — and our New Jersey life insurance attorneys are ready to help you enforce them.

Insurance companies often deny claims by citing minor technicalities, alleged errors in the application, or selective interpretations of policy language. But New Jersey has some of the strongest consumer protection laws in the nation, and insurers who engage in bad faith practices can be held accountable. We offer free consultations and only get paid if we successfully recover benefits for you.

How the Contestability Period Affects Life Insurance Claims in New Jersey

In New Jersey, life insurance policies generally include a two-year contestability period. During this period, insurers can review claims and deny benefits if they discover material misrepresentations made during the application process. However, after two years, the insurer’s ability to deny a claim based on application errors is severely limited unless they can prove intentional fraud.

It’s important to remember that not every mistake justifies a denial. Only material misstatements — those that would have influenced the insurer’s decision to issue or price the policy — are grounds for rescission. Minor or irrelevant errors typically cannot be used to deny benefits under New Jersey law.

If your claim has been denied based on contestability arguments, an experienced attorney can review the facts and determine whether the denial is legally justified.

Common Reasons Life Insurance Claims Are Denied in New Jersey

Although each case is different, many life insurance denials in New Jersey follow familiar patterns. Common reasons insurers cite include:

  • Alleged Misrepresentations in the Application: Insurers claim the insured failed to disclose a health condition, medication use, or lifestyle risks.

  • Policy Lapse for Nonpayment: Missed premium payments may be cited as grounds for cancellation, but New Jersey law requires insurers to provide clear, advance notice before terminating a policy.

  • Exclusions for Certain Causes of Death: Deaths related to suicide (within the exclusion period), participation in criminal activity, or high-risk hobbies may be excluded based on policy wording.

  • Beneficiary Disputes: Conflicts between multiple claimants or challenges to recent beneficiary changes often delay payment.

  • Group Life Insurance Enrollment Errors: Mistakes made during group enrollment by employers or insurers can wrongfully deprive families of benefits.

  • Delays Linked to Death Investigations: Insurers sometimes delay claims when a death is under investigation, but unreasonable delays may constitute bad faith under New Jersey law.

Whatever the reason provided, many life insurance denials can — and should — be challenged.

What to Do After a Life Insurance Denial in New Jersey

Responding quickly and carefully to a denial can protect your rights. If your claim has been denied:

  • Request a full copy of the life insurance policy, the application, and any endorsements.

  • Review the denial letter carefully, noting the insurer’s specific reasons.

  • Save all communications with the insurer, including emails, letters, and call notes.

  • Avoid providing new documents or statements without consulting an attorney.

  • Contact a New Jersey life insurance lawyer immediately to review your case and develop a strategy.

New Jersey also imposes penalties on insurers who engage in bad faith claim handling practices — offering additional avenues for recovery in some cases.

How Our New Jersey Life Insurance Attorneys Handle Denied Claims

When you work with our firm, you get a team that is deeply experienced in holding insurance companies accountable. We will:

  • Conduct a full review of your insurance policy, application documents, and the denial letter.

  • Challenge improper rescissions, lapse arguments, and policy exclusions.

  • Handle all communications and negotiations with the insurer.

  • Prepare administrative appeals when necessary for group life insurance policies.

  • Initiate litigation in New Jersey courts if insurers refuse to honor valid claims.

  • Pursue additional damages for bad faith conduct where applicable.

Our mission is to recover the full value of your life insurance benefits and ensure that insurance companies meet their obligations under New Jersey law.

New Jersey Denied Life Insurance Claims: Answers to Common Questions

What should I do if my life insurance claim in New Jersey was denied?

If your life insurance claim in New Jersey was denied, you should contact a life insurance attorney immediately. For example, if your claim was denied due to an alleged misrepresentation, a lawyer can often prove it was minor or unrelated to the death.

What should I do if I’ve been served with a life insurance interpleader lawsuit in New Jersey?

If you’ve been served with a life insurance interpleader lawsuit in New Jersey, you must act quickly to protect your rights. For instance, when multiple beneficiaries are disputing a payout, a lawyer can step in to represent your interests in court.

How much does a New Jersey life insurance lawyer cost?

Most New Jersey life insurance lawyers, including our firm, work on a contingency fee basis. That means, for example, you pay nothing upfront, and we only collect a fee if we recover the life insurance proceeds for you.

Why are life insurance claims denied in New Jersey?

Life insurance claims in New Jersey are often denied for reasons like alleged misrepresentation, lapse, exclusions, or cause of death disputes. For example, an insurer may deny a claim citing a minor health disclosure issue that had no bearing on the death.

Can an AD&D life insurance claim be denied in NJ if the insurer says the death wasn’t accidental?

Yes, but we frequently dispute such denials. For instance, if the insurer claims a fatal fall was due to a medical event instead of an accident, we gather medical and forensic evidence to establish the true cause.

What should I do if I’m involved in a life insurance beneficiary dispute in NJ?

If you're involved in a beneficiary dispute in New Jersey, you should retain a life insurance attorney immediately. For example, disputes often arise when a new spouse is named instead of children, and we help rightful beneficiaries assert their claims.

Why would an accidental death and dismemberment claim be denied in New Jersey?

AD&D claims are often denied by arguing the death wasn't accidental or involved alcohol. For example, if an insured drowned and alcohol was present, insurers may deny, but we fight back by proving the death still qualifies as accidental.

Can a policy lapse be used to deny a life insurance claim in New Jersey?

A policy lapse can be used to deny a claim, but many lapses are challenged successfully. For example, if the insurer failed to send proper grace period notices, the policy may still be legally active at the time of death.

Is misrepresentation on a life insurance application grounds for denial in NJ?

Misrepresentation can be grounds for denial only if it was material and intentional. For instance, if the insured misstated their height but died in an unrelated accident, we argue the misrepresentation is irrelevant.

Can an alcohol exclusion prevent payout on a life insurance policy in NJ?

An alcohol exclusion can prevent payout only if clearly stated and applicable. For example, if alcohol was present but not the cause of death, we challenge the insurer’s attempt to deny the claim.

What should I do if my ERISA life insurance claim is denied in New Jersey?

If your ERISA life insurance claim is denied, you should immediately consult an attorney since you only get one administrative appeal. For instance, missing key evidence in your appeal can permanently destroy your chances without a lawyer's help.

What happens if my life insurance claim is denied during the contestability period in NJ?

If a claim is denied during the contestability period, the insurer must prove a material misstatement. For example, misstating smoking history would matter if death was related to lung disease but not if caused by an unrelated accident.

What should I do if the insurer cites New Jersey law to justify the denial?

You should have a lawyer review whether the insurer properly applied New Jersey law. For instance, insurers sometimes wrongly use revocation statutes to deny rightful beneficiary claims after divorce.

Which life insurance companies deny the most claims in New Jersey?

Prudential and MetLife are known for high denial rates in New Jersey. For example, we have handled many cases where Prudential denied claims over alleged health misstatements that were ultimately proven immaterial.

Does New Jersey have a law that removes ex-spouses as beneficiaries after divorce?

Yes, New Jersey law generally revokes an ex-spouse’s rights after divorce unless reaffirmed. For example, if the policyholder did not update the beneficiary after divorce, the ex-spouse may be automatically disqualified.

Is New Jersey a community property state, and does that affect life insurance benefits?

New Jersey is not a community property state, but marital property principles can still apply. For instance, if premiums were paid with joint marital funds, a spouse may have a claim to part of the benefit.

Can a will override a named beneficiary in New Jersey?

A will cannot override a named life insurance beneficiary. For example, even if the will leaves everything to one child, the life insurance proceeds must go to the named beneficiary unless fraud is proven.

Can a foreign death be used to deny a claim in New Jersey?

Foreign deaths can sometimes trigger denials, but unless the policy specifically excludes them, the claim should still be paid. For example, if an insured died while traveling abroad, we help fight wrongful denials based on location alone.

Can I dispute a change to the beneficiary form made right before death?

Yes, you can dispute a sudden beneficiary change made shortly before death. For instance, if an elderly person changed beneficiaries while hospitalized, we can investigate whether undue influence occurred.

What if the insurer is delaying the claim for months in NJ?

If an insurer delays payment unreasonably in New Jersey, it may constitute bad faith. For example, if a valid claim is delayed for over six months without good reason, we can sue for damages beyond the policy benefit.

Can an accidental death claim be denied by misclassifying the cause of death?

Yes, insurers may deny claims by misclassifying death as natural. For example, an insurer might claim a fall was due to a heart attack rather than an accident, and we bring in medical experts to prove otherwise.

What if an insurance agent helped fill out the application incorrectly?

If an agent helped fill out the application incorrectly, the insurer may still be liable. For instance, if the agent omitted a known health condition while submitting the application, we challenge the denial based on agent error.

Can I sue for bad faith if the insurer wrongfully denies my claim in NJ?

Yes, you can sue for bad faith if the insurer wrongfully denies your claim. For example, if an insurer denies a claim without a legitimate investigation, New Jersey law allows for punitive damages in addition to benefits.

Can suicide exclusions be challenged in New Jersey?

Yes, suicide exclusions can be challenged if misapplied. For instance, if the policy was beyond the two-year exclusion window and the insurer still denies based on suicide, we fight back.

Are life insurance policies from New Jersey employers governed by ERISA?

Most group life insurance policies from New Jersey employers are governed by ERISA. For example, if your employer-provided policy is denied, strict federal appeal procedures apply that we handle carefully.

What happens if the insured didn’t disclose a health issue on the application?

The insurer must prove the omission was material and intentional. For example, if the insured forgot to disclose minor seasonal allergies and died in a car accident, the omission likely won't justify denial.

What if no one is listed as a beneficiary on the policy?

If no one is named as a beneficiary, the proceeds usually go to the insured’s estate. For example, the funds would pass through New Jersey probate and be distributed according to the will or state law.

Can a suspicious beneficiary designation be challenged in court?

Yes, suspicious beneficiary designations can be challenged. For instance, if a last-minute beneficiary change was made when the insured lacked mental capacity, we can petition the court to set aside the change.

What are the notice requirements for policy cancellation in New Jersey?

New Jersey law requires insurers to send specific notices before canceling a policy for non-payment. For example, if the insurer failed to send the required lapse notice, the cancellation may be invalid.

What if my life insurance came through a New Jersey union or association?

If your life insurance came through a union or association in New Jersey, special rules may apply. For instance, some union plans have internal grievance procedures that must be followed before filing a lawsuit.

Can a co-beneficiary be denied their share of the policy?

A co-beneficiary may be denied their share only if disqualified or deceased. For example, if one co-beneficiary predeceased the insured, the surviving co-beneficiary may claim the full benefit depending on policy terms.

What if the policyholder disappeared and was later declared dead?

If the policyholder disappeared and was legally declared dead, you can pursue the claim. For instance, New Jersey courts generally require a five-year absence before issuing a death declaration.

Can I reopen a denied claim in New Jersey?

Yes, many denied claims can be reopened with new evidence or legal arguments. For example, if new medical evidence disproves the insurer's denial reason, we can file to reopen the claim.

Can creditors go after life insurance proceeds in New Jersey?

Creditors generally cannot access life insurance proceeds if there is a named beneficiary. For example, if the insured named a spouse as beneficiary, creditors typically cannot claim those funds.

What if the policy language is vague or confusing?

If policy language is vague or confusing, New Jersey courts interpret it in favor of the policyholder. For example, if an exclusion is unclear, we argue that the ambiguity must benefit the beneficiary.

What happens if the insurer claims the policy lapsed but never gave notice?

If the insurer never provided proper lapse notice, the policy may still be valid. For instance, if billing records show notices were sent to the wrong address, we challenge the lapse.

Can a child beneficiary receive the funds directly in NJ?

No, if a minor is named as a beneficiary, a guardian or trust must manage the proceeds. For example, we assist families in establishing guardianship accounts to properly hold and protect the child’s benefit.

2025 New Jersey Denied Life Insurance Claims: settlements & verdicts

Below are examples of New Jersey life insurance claims successfully resolved.

  • Mutual Benefit denied coronavirus claim $55,000.00
  • Mass shooting NJ denied life insurance claim $210,000.00
  • John Hancock ex-wife vs wife $50,000.00
  • Accidental Death & Dismemberment $529,600.00
  • Farmers denial of COVID-19 claim $45,000.00
  • Denied SGLI claim beneficiary dispute $401,476,00
  • First National ex-wife versus wife $101,300.00
  • American United interpleader $145,000.00
  • Midland National health misrepresentation $10,000.00
  • Confederation Life sickness exclusion $129,000.00
  • Denied FEGLI claim competing beneficiaries $253,000.00
  • Lincoln Mutual heart attack denial $314,600.00
  • AAA dispute among siblings $125,000.00
  • State Farm prescription drug exclusion $16.000.00
  • Denied AD&D claim felony exclusion $103,200.00
  • Mutual of Omaha AD&D denial $253,000.00
  • Allianz Life illegal drug exclusion heroin $212,600.00
  • United of Omaha Life suicide exclusion $245,300.00
  • West Coast Life misrepresentation alleged 105,100.00
  • Ohio National Life interpleader lawsuit $314,500.00
  • American National Life self-inflicted injury $124,000.00
  • AARP Life sickness exclusion won $253,400.00
  • New Jersey life insurance claim $822,300.00
  • Western Southern Life foreign death $325,000.00
  • FEGLI denied claim success $102,000.00
  • Globe Life delay of life benefits $106,300.00
  • Mutual Life AD&D claim denied $307,900.00
  • American United Life accidental death $220,400.00
  • Sun Life autoerotic asphyxiation death $275,000.00
  • New York Life delay for no reason $109,250.00
  • Gerber Life forgery of beneficiary $100,000.00
  • New Jersey divorce and life insurance $513,150.00
  • Denied life insurance claim NJ $1,500,000.00
  • MetLife AD&D denial won by us $759,450.00
  • Columbian Life interpleader case $232,620.00
  • William Penn Life long delay $100,000.00
  • Met LIfe dispute beneficiaries $138,000.00
  • ERISA appeal won by our law firm $417,900.00
  • Denied life insurance claim NJ $750,000.00
  • NJ denied AD&D claim won $613,500.00
  • United Life felony exclusion $249,300.00
  • TIAA life insurance denial $109,500.00
  • Transamerica Premier accidental death $307,350.00
  • Principal Life three exclusions $125,000.00
  • Globe Life drug exclusion $103,480.00
  • Primerica alleged misrepresentation $249,200.00
  • NJ life insurance claim denied $1,250,000.00
  • Great American Life Suicide exclusion $251,100.00
  • Combined Life beneficiary change $264,700.00
  • SGLI change of beneficiary lawsuit $400,000.00
  • Omaha Life dispute among family $350,000.00
  • Physicians Mutual Life exclusion alcohol $105,320.00

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

Legal References – New Jersey

  • New Jersey Contestability Clause Law: Life insurance policies in New Jersey are subject to a two-year contestability period under N.J.S.A. 17B:25-4, during which an insurer may deny a claim for material misrepresentation in the application.

  • Automatic Revocation of Ex-Spouse Beneficiaries: Under N.J.S.A. 3B:3-14, a divorce automatically revokes a former spouse’s designation as a life insurance beneficiary, unless the policy explicitly states otherwise or reaffirmed after divorce.

  • Community Property Laws: New Jersey is not a community property state, meaning a spouse is not automatically entitled to life insurance proceeds unless named as a beneficiary or protected by a marital agreement or court order.

  • ERISA & Group Policies: Employer-provided life insurance plans governed by ERISA (Employee Retirement Income Security Act of 1974) may preempt New Jersey law, particularly in cases involving beneficiary disputes or spousal rights.

For more information on insurance regulations and consumer protections in New Jersey, you can visit the New Jersey Department of Banking and Insurance. Additionally, the National Association of Insurance Commissioners (NAIC) offers nationwide insurance resources.

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.