Life Insurance Lawyer South Carolina

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


Life insurance companies in South Carolina sometimes reject claims for reasons that may not hold up under legal scrutiny. If you're facing a life insurance claim denial in South Carolina, The Lassen Law Firm can help you challenge the insurer’s decision and work to secure the benefits you’re owed.

In South Carolina, life insurance beneficiary disputes often occur when policy updates are made under questionable circumstances or when relatives challenge the validity of a designation. If you're facing a life insurance beneficiary dispute in South Carolina, The Lassen Law Firm is ready to fight for your rights and help secure the benefits you were meant to receive.

In South Carolina, life insurance companies often file an interpleader action in South Carolina when faced with competing claims, allowing the court to determine who is legally entitled to the death benefit.

Trusted Life Insurance Lawyers South Carolina: The Lassen Law Firm

Navigating life insurance claims in South Carolina can be complex, especially when faced with denied benefits or bad faith insurance practices. At The Lassen Law Firm, we proudly assist individuals and families across the Palmetto State in recovering the payouts they deserve. Whether you’re in Charleston, Columbia SC, Greenville SC, Mount Pleasant, Rock Hill SC, Myrtle Beach, or any other part of South Carolina, we bring trusted legal expertise and personalized attention to every case.

As experienced 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 relentless advocacy, legal knowledge, and compassionate representation to fight for justice for every individual and family 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 South Carolina? We’re Ready to Fight for You

Life insurance is a powerful promise: financial protection for families when it matters most. But in South Carolina, many beneficiaries are forced to deal with unexpected claim denials, unreasonable delays, or partial payments. If your life insurance claim has been denied, our South Carolina life insurance attorneys are ready to stand up for your rights and work to recover the full benefits you are owed.

Insurance companies operating in South Carolina are bound by laws requiring fair, prompt, and honest claim handling. When they fail to meet these standards, they can be held accountable — and beneficiaries may be entitled to additional damages for bad faith. We offer free consultations, and you pay nothing unless we win your case.

Understanding the Contestability Period for Life Insurance Claims in South Carolina

Life insurance policies issued in South Carolina typically include a two-year contestability period. During this time, insurers can deny claims if they discover material misstatements made in the application. After the contestability period expires, insurers generally lose the ability to contest claims based on application errors unless they can prove intentional fraud.

A key point under South Carolina law: not every mistake justifies denial. Only material misrepresentations — information that would have influenced the insurer’s decision to issue or price the policy — permit rescission. Honest mistakes, minor omissions, or irrelevant inaccuracies do not justify denying benefits.

If your claim was denied on contestability grounds, it’s crucial to have a skilled South Carolina life insurance lawyer review the insurer’s actions.

Common Reasons Life Insurance Claims Are Denied in South Carolina

While each case is different, insurance companies often use the same strategies to deny life insurance claims. In South Carolina, common reasons for denial include:

  • Allegations of Misrepresentations: Insurers claim the insured failed to disclose medical conditions, prescription drug use, or hazardous activities.

  • Policy Lapses Due to Nonpayment: Missed payments may trigger lapse defenses, but South Carolina law requires insurers to provide clear notice and a grace period before terminating coverage.

  • Policy Exclusions for Certain Causes of Death: Deaths linked to suicide (within exclusion periods), criminal activities, or dangerous hobbies may fall under exclusions depending on the policy terms.

  • Beneficiary Disputes: Disagreements between family members or challenges to recent beneficiary changes can delay or derail claims.

  • Employer Errors with Group Life Insurance: Mistakes made during enrollment or maintenance can wrongfully deprive families of group life benefits.

  • Delays Due to Death Investigations: When a death is under investigation, insurers sometimes delay payment, but prolonged delays may violate South Carolina’s claims handling laws.

Even when insurers sound confident in their denial letters, many denials can — and should — be challenged with strong legal representation.

First Steps to Take After a Life Insurance Denial in South Carolina

Taking smart, fast action after receiving a denial can make all the difference. You should:

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

  • Review the insurer’s denial letter carefully and note all reasons cited.

  • Save all communications with the insurer, including emails, letters, and notes from phone conversations.

  • Avoid sending additional documents or making statements without speaking to a life insurance attorney first.

  • Contact a South Carolina life insurance lawyer quickly to start protecting your rights and preparing an appeal or lawsuit if necessary.

South Carolina law also provides strong remedies for bad faith denials, including the possibility of punitive damages.

How Our South Carolina Life Insurance Attorneys Handle Denied Claims

When you work with our firm, you gain a legal team dedicated exclusively to representing life insurance beneficiaries. We will:

  • Analyze your policy, the denial letter, and related documents to identify legal and factual weaknesses.

  • Challenge improper rescissions, lapse defenses, and exclusions based on South Carolina law.

  • Handle all communication with the insurance company on your behalf.

  • Prepare administrative appeals where required for group life policies governed by ERISA.

  • Litigate denied claims in South Carolina courts when insurers refuse to resolve claims fairly.

  • Pursue additional damages if the insurer’s conduct qualifies as bad faith under South Carolina insurance law.

Our focus is on recovering the full life insurance benefits your loved one intended for you — and holding insurers accountable when they violate the law.

South Carolina Denied Life Insurance Claims: Answers to Common Questions

What Should I Do If My Life Insurance Claim Was Denied in South Carolina?

If your life insurance claim was denied in South Carolina, it’s critical to consult a qualified attorney immediately. For example, we recently helped a Charleston widow recover benefits after a wrongful denial citing an outdated medical condition.

How Should I Respond to a Life Insurance Interpleader Lawsuit in South Carolina?

An interpleader means the insurer is asking the court to decide who gets the payout. In Columbia, we defended a rightful beneficiary who was challenged by distant relatives in a contested interpleader action.

What If I'm Facing a Life Insurance Beneficiary Dispute in South Carolina?

Beneficiary disputes are common after divorces and second marriages. In Greenville, we successfully resolved a dispute involving a new spouse and adult children from a prior marriage.

Why Do Accidental Death & Dismemberment Claims Get Denied in South Carolina?

AD&D claims are often denied by labeling deaths as natural or intoxication-related. In Rock Hill, we fought and won a case where a car accident was wrongfully classified as "natural causes."

Can a Lapse in Coverage Result in a Denied Life Insurance Claim in South Carolina?

Yes, but not always legally. We recently overturned a lapse-based denial in Summerville where the insurer failed to send proper late payment notices.

Can a Misstatement on a Life Insurance Application Be Used to Deny a Claim in South Carolina?

Only if the misstatement was both material and intentional. In Spartanburg, we proved that an omitted medication had no bearing on the death, forcing the insurer to pay.

Can an Alcohol Exclusion Be the Basis for Denying Life Insurance Benefits in South Carolina?

Yes, but we often defeat these claims. In Florence, we showed that alcohol use was incidental and not the cause of a fatal fall, overturning the insurer’s denial.

What Should I Do If My ERISA Group Life Insurance Claim Is Denied in South Carolina?

You must act fast because ERISA rules allow only one appeal. We successfully appealed a federal employee's denied claim in Charleston after exposing errors in the claim file.

What Is the Contestability Period in South Carolina, and How Can It Affect My Life Insurance Claim?

South Carolina policies typically have a two-year contestability window. In Hilton Head, we reversed a contestability denial by proving the misstatement was unrelated to the insured’s sudden heart attack.

What If My Denial Letter Cites South Carolina Law as the Reason for Denial?

Insurers often misinterpret state law. In Aiken, we identified legal errors in a denial letter and overturned a wrongful denial based on misapplied policy language.

Which Life Insurance Companies Deny the Most Claims in South Carolina?

Colonial Life and Companion Life in Columbia are frequently associated with disputed claims. We challenge all insurers aggressively when benefits are wrongfully withheld.

Does South Carolina Law Revoke a Beneficiary Designation for an Ex-Spouse After Divorce?

Yes. We recently helped a client in Mount Pleasant secure benefits after a divorce automatically revoked an ex-spouse’s outdated beneficiary status.

Is South Carolina a Community Property State, and Does That Impact Life Insurance Claims?

No, but if marital funds were used for premiums, a surviving spouse in South Carolina may still have rights. We litigated such a case successfully in Beaufort.

Can a South Carolina Will Override the Life Insurance Policy’s Named Beneficiary?

No. The policy beneficiary usually controls. However, in cases involving fraud, like one we handled in Anderson, courts can intervene.

How Much Do South Carolina Life Insurance Attorneys Charge?

We work strictly on a contingency fee basis—meaning you pay nothing unless we recover the life insurance benefits for you.

Can a Life Insurance Claim Be Denied in South Carolina If the Death Occurred Abroad?

Yes, but only if a valid foreign death exclusion applies. In Myrtle Beach, we defeated a denial involving a tourist death that didn’t meet exclusion criteria.

Can a Change of Beneficiary Right Before Death Be Challenged in South Carolina?

Yes. We overturned a last-minute change in North Charleston where a caretaker pressured the insured into altering the policy days before death.

What Should I Do If My South Carolina Life Insurance Claim Is Being Delayed for Months?

Delays without justification can amount to bad faith. In Lexington, we secured extra damages against an insurer that intentionally stalled payment.

Can a South Carolina AD&D Claim Be Denied by Labeling the Death Natural Instead of Accidental?

It’s a common tactic, but we often defeat it. In Greenwood, we proved a workplace accident qualified for full AD&D benefits despite the insurer’s objections.

What If the Life Insurance Agent in South Carolina Made an Error on the Application?

If the error was the agent’s fault, the insurer may still be responsible. We recently reversed a denial in Goose Creek based on an agent’s mistake during enrollment.

What Is Considered Insurer Bad Faith in South Carolina Life Insurance Claims?

Bad faith includes unfair denials, misleading interpretations, or slow processing. We obtained punitive damages in a Columbia case where the insurer acted egregiously.

Can I Appeal a Life Insurance Denial During the Contestability Period in South Carolina?

Yes, and we often succeed. In Greer, we proved a minor application mistake had no link to the insured’s death, leading to claim approval.

Are ERISA Life Insurance Appeals More Complex in South Carolina?

Yes. ERISA imposes strict procedural rules, but we guide South Carolina clients through the administrative appeal and federal litigation process.

What If a South Carolina Life Insurance Policy Has No Named Beneficiary?

If there’s no beneficiary, the funds typically pass to the estate. We help families in Sumter recover estate-based payouts through South Carolina probate.

Can I Challenge a Suspicious Beneficiary Designation in South Carolina?

Absolutely. We recently reinstated the rightful beneficiary in a Conway case after showing undue influence over a vulnerable policyholder.

Does South Carolina Require Notice Before a Policy Is Canceled for Non-Payment?

Yes, insurers must send timely notice. We successfully overturned a lapse denial in Camden after showing no proper cancellation notice was sent.

How Are Group and Employer-Provided Life Insurance Policies Handled in South Carolina?

Many are governed by ERISA. We recently recovered denied benefits for a Greenville municipal worker whose employer mishandled enrollment paperwork.

Can More Than One Person Claim the Same Life Insurance Policy in South Carolina?

Yes. We represent clients in interpleader lawsuits filed in Charleston and other South Carolina courts when multiple claims arise.

What If the Insured Was Missing and Later Declared Legally Dead in South Carolina?

Once a South Carolina court issues a death declaration, claims can proceed. We recently completed such a claim for a family in Orangeburg.

How Long Do I Have to Appeal a Life Insurance Denial in South Carolina?

ERISA policies require an appeal within 180 days. Non-ERISA timelines vary. We act immediately to preserve your rights under South Carolina law.

Can Oral Promises Override a Written Life Insurance Policy in South Carolina?

No. South Carolina courts enforce written beneficiary designations, but equitable remedies may apply in rare fraud-related cases.

Are Life Insurance Payouts Protected From Creditors in South Carolina?

Yes, if payable to a named beneficiary. If the payout goes to the estate, creditors may reach the proceeds through probate.

Can Policy Wording Be Used to Deny a Claim If It’s Vague in South Carolina?

No. South Carolina law requires vague terms to favor the insured or beneficiary. We successfully use this rule to fight ambiguous denials.

Can a Lapsed Life Insurance Policy Still Pay Out in South Carolina?

Yes, under certain circumstances. We helped a family in Bluffton recover benefits after an insurer failed to send a required grace period notice.

What Should I Do If My Claim Was Denied for Non-Payment of Premiums in South Carolina?

We investigate whether proper notice was given. Many denials in South Carolina have been reversed after finding notice violations.

Can Minors Receive Life Insurance Proceeds in South Carolina?

Yes, but a guardian or trust may be required. We assist families in setting up protections for minor beneficiaries across South Carolina.

Can Fraud Allegations Be Used to Deny a Claim in South Carolina?

Only if the insurer proves actual fraud. We routinely challenge vague fraud accusations and recover wrongfully withheld benefits.

Can South Carolina Life Insurance Disputes Be Settled Outside of Court?

Yes. Many cases resolve through negotiation, but we are ready to file suit when necessary to maximize your recovery.

What Happens If a Beneficiary Change Form Was Never Submitted in South Carolina?

If it wasn’t properly submitted, the old beneficiary likely remains valid. We litigate such cases and restore rightful designations.

Are Old Life Insurance Policies Still Valid in South Carolina?

Yes. Even policies issued decades ago remain valid if the insured was covered at death. We specialize in recovering payouts from older policies.

How Do I Prove I'm the Rightful Beneficiary Under South Carolina Law?

We compile policy documents, medical records, and sworn statements to prove your entitlement. Our South Carolina life insurance attorneys know how to build winning claims.

2025 South Carolina Denied Life Insurance Claims: settlements & verdicts

Below are examples of South Carolina life insurance claims successfully resolved.

  • Erie Life’s COVID-19 death denial was overturned, securing a favorable settlement of $109,000 by challenging the insurer’s interpretation of pandemic-related clauses.
  • A major Accidental Death & Dismemberment (AD&D) denial was successfully contested, recovering $528,000 by clarifying policy ambiguities.
  • Liberty National’s coronavirus-related death claim denial was overturned, securing $111,000 by proving insurer errors regarding pandemic coverage exclusions.
  • An SGLI denial due to a beneficiary change dispute was resolved favorably, securing $40,000 through clear documentation.
  • All American Life’s denial involving a power of attorney change was successfully contested, recovering $12,000 by demonstrating valid authorization.
  • Industrial Life’s material misrepresentation denial was successfully overturned, securing $23,000 after establishing inaccuracies were not fraudulent.
  • Security Plan Life’s suicide exclusion denial was overturned, recovering $101,900 by clarifying policy language ambiguities.
  • AVMA Life’s interpleader lawsuit was successfully resolved, securing $156,000 through clear beneficiary determination.
  • Royal Neighbors’ health record-related denial was successfully contested, recovering $109,000 by proving underwriting oversights.
  • American Retirement Life’s illness exclusion denial was overturned, recovering $13,000 through litigation clarifying ambiguous policy terms.
  • An AD&D claim denial involving intoxication was resolved favorably, recovering a substantial $940,000 settlement by demonstrating intoxication was not directly related to the death.
  • Loyal American Life’s oxycontin-related denial was successfully overturned, securing $77,000 by clarifying legitimate medical use.
  • Chase Life’s insurable interest dispute was successfully resolved, recovering $208,000 through clarification of policy terms and beneficiary rights.
  • A denied claim related to a mass shooting in South Carolina was successfully contested, securing $112,000 by clarifying policy exclusions.
  • Stonebridge Life’s interpleader lawsuit was successfully resolved, recovering $301,900 by clearly identifying rightful beneficiaries.
  • Genworth’s denial citing misstatement of age on the application was overturned, securing $218,000 after proving clerical errors.
  • Primerica’s denial involving suicide/self-inflicted injury was successfully contested, recovering $315,000 by demonstrating ambiguities in policy terms.
  • A substantial South Carolina denied life insurance claim totaling $3,100,000 was successfully litigated, highlighting extensive insurer procedural oversights.
  • HSBC’s denial for application misrepresentation was overturned, recovering $416,000 by demonstrating inaccuracies were not fraudulent.
  • Metropolitan Life’s denial alleging policy inactivity was successfully contested, recovering $105,000 by proving policy status errors by the insurer.
  • An ERISA-governed life insurance claim denial was successfully appealed, recovering $189,000 through strong legal advocacy.
  • Another significant denied claim in South Carolina totaling $2,200,000 was resolved through diligent litigation, emphasizing insurer errors.
  • Prudential’s drunk driving-related denial was overturned, securing $417,000 by proving alcohol was not the direct cause of death.
  • An SGLI dispute involving a change of beneficiary form was successfully resolved, recovering $400,000.
  • A South Carolina divorce-related life insurance denial was favorably resolved, securing $550,000 by clarifying beneficiary entitlement post-divorce.
  • A FEGLI appeal achieved rapid resolution within two weeks, securing $168,000 through expert advocacy.
  • Bankers Life’s denial involving alleged illegal or dangerous activity was successfully contested, recovering $107,000 by clarifying policy misapplications.
  • A South Carolina bad faith life insurance claim denial was favorably resolved, recovering $790,000 through litigation emphasizing insurer misconduct.
  • Mass Mutual’s foreign death claim was successfully contested, recovering $431,000 by clarifying coverage ambiguities.
  • Allstate’s denial involving autoerotic asphyxiation death was successfully overturned, securing $317,300 by proving accidental death circumstances clearly outlined in policy provisions.

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

Legal References – South Carolina

  • South Carolina Contestability Clause Law: Under S.C. Code Ann. § 38-63-220(d), life insurance policies in South Carolina become incontestable after being in force during the lifetime of the insured for two years from the policy's date, except for nonpayment of premiums. During this contestability period, insurers may deny claims based on material misrepresentations made in the application.​

  • Automatic Revocation of Ex-Spouse Beneficiaries: South Carolina law does not automatically revoke a former spouse's designation as a beneficiary on a life insurance policy upon divorce. Therefore, unless the policyholder updates the beneficiary designation after divorce, the ex-spouse may remain the beneficiary.​

  • Equitable Distribution Laws: South Carolina is an equitable distribution state, not a community property state. This means that life insurance proceeds are distributed according to the policy's beneficiary designation, and a surviving spouse is not automatically entitled to the death benefit unless named as a beneficiary or granted rights through a court order or marital agreement.​

  • ERISA & Group Policies: Employer-provided life insurance policies governed by the Employee Retirement Income Security Act of 1974 (ERISA) may preempt South Carolina's state laws in cases involving contested beneficiaries, including disputes with former spouses. In such cases, the beneficiary designation on the policy typically determines who receives the proceeds, regardless of state laws.

For more information on insurance regulations and consumer protections in South Carolina, you can visit the South Carolina Department of 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.