Life Insurance Lawyer Texas

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

In Texas, families often struggle when a life insurance company wrongfully refuses to pay out after the loss of a loved one. If you're dealing with a denied life insurance claim in Texas, The Lassen Law Firm is ready to take on the insurer and fight for the benefits you deserve.

Life insurance beneficiary disputes in Texas often arise from outdated designations, sudden changes made under pressure, or conflicts between surviving family members. If you're involved in a life insurance beneficiary dispute in Texas, The Lassen Law Firm can help you assert your claim and work to recover the benefits intended for you.

When multiple parties claim the same life insurance benefits in Texas, insurers commonly file an interpleader lawsuit in Texas to transfer the decision to the court and avoid the risk of paying the wrong person.

Trusted Life Insurance Lawyers Texas: The Lassen Law Firm

Navigating life insurance claims in Texas can be overwhelming, especially when dealing with denied benefits or bad faith insurance practices. At The Lassen Law Firm, we are dedicated to helping individuals and families across the Lone Star State secure the payouts they deserve. From Houston to Dallas, Austin to San Antonio, El Paso, Arlington TX, Fort Worth, Corpus Christi, and every corner of Texas, we provide trusted legal expertise and personalized support tailored to your needs.

As nationally recognized life insurance attorneys, we’ve handled cases across all 50 states, with a proven track record of success—hundreds of millions in policies recovered for our clients. At The Lassen Law Firm, we combine unmatched dedication, legal expertise, and relentless advocacy to deliver justice for those we represent. 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 Texas? Our Attorneys Are Ready to Fight for You

Life insurance provides a critical financial safety net for families during difficult times. But in Texas, many beneficiaries face unfair claim denials, unexplained delays, or low settlement offers when trying to collect the benefits they are rightfully owed. If your life insurance claim has been denied, our Texas life insurance attorneys are prepared to stand up for your rights and demand full payment.

Insurance companies in Texas are legally required to handle claims fairly and in good faith. When they violate those obligations, you have the right to challenge the denial — and in some cases, seek additional compensation for bad faith conduct. We offer free consultations, and you do not pay legal fees unless we recover benefits for you.

Understanding the Contestability Period in Texas Life Insurance Claims

Most life insurance policies issued in Texas include a two-year contestability period. During this time, insurers may deny claims if they uncover material misrepresentations made in the initial application. After two years have passed, insurers generally cannot rescind the policy based on application issues unless they can prove fraud.

Importantly, Texas law requires that only material misstatements — inaccuracies that would have influenced the insurer’s decision to issue or price the policy — justify rescission. Innocent mistakes, minor oversights, or irrelevant omissions do not provide valid grounds for denial after death.

If your claim has been denied on contestability grounds, it is crucial to have an experienced Texas life insurance lawyer review the circumstances and protect your rights.

Common Reasons Life Insurance Claims Are Denied in Texas

Insurance companies often rely on recurring arguments when denying life insurance claims. In Texas, common denial reasons include:

Alleged Application Misrepresentations: Claims that the insured failed to disclose important health issues, tobacco use, or participation in dangerous activities.
Policy Lapse for Nonpayment: Missed premium payments may be cited, but Texas law requires insurers to provide proper notice and comply with grace periods before canceling coverage.
Exclusions for Specific Causes of Death: Deaths involving suicide (within an exclusion period), illegal acts, or hazardous hobbies may be excluded under the policy.
Beneficiary Disputes: Conflicts among beneficiaries, challenges to last-minute changes, or disputes over community property issues can delay payment.
Employer Errors in Group Life Insurance: Mistakes during enrollment or plan administration can wrongfully deprive families of coverage.
Delays Related to Death Investigations: Insurers sometimes delay paying claims under the pretext of ongoing investigations, but Texas law prohibits unreasonable delays.

Even if an insurer provides a detailed denial letter, many denials are legally vulnerable and can be successfully challenged.

What to Do After a Life Insurance Denial in Texas

If you receive a life insurance denial, acting quickly and strategically can protect your rights. Steps to take include:

Request and review a complete copy of the insurance policy, including the application and all riders.
Save the denial letter and document the insurer’s stated reasons.
Keep all communications with the insurer, including emails, letters, and call notes.
Avoid making new statements or providing additional documents without legal advice.
Contact a Texas life insurance attorney promptly to evaluate your claim and begin building a strategy for appeal or litigation.

Texas law provides strong remedies for beneficiaries, including the potential for additional damages if the insurer engaged in bad faith.

How Our Texas Life Insurance Attorneys Handle Denied Claims

When you hire our firm, you gain a team committed to enforcing the rights of life insurance beneficiaries. We will:

Review your insurance policy, application documents, and the insurer’s denial explanation in full.
Identify any legal violations, misinterpretations, or unfair claims practices.
Challenge wrongful contestability rescissions, lapse defenses, and policy exclusions.
Manage all communication and negotiation with the insurance company on your behalf.
Prepare administrative appeals if necessary for employer-provided group life insurance governed by ERISA.
File lawsuits in Texas courts when insurers refuse to pay valid claims.
Pursue additional damages for bad faith conduct if the insurer’s actions violate Texas law.

Our mission is to recover the full life insurance benefits you deserve and to hold insurers accountable when they break the law.

Texas Denied Life Insurance Claims: Answers to Common Questions

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

If your life insurance claim in Texas was denied, don’t wait. A Texas life insurance lawyer can evaluate the reason for denial and build a strategy to recover the benefit. For instance, we recently helped a client in Houston overturn a denial caused by an alleged minor misstatement.

What If I’ve Been Served With a Life Insurance Interpleader Lawsuit in Texas?

Being served with an interpleader in Texas means the insurer wants the court to decide who gets paid. We defended a Dallas beneficiary in an interpleader where an ex-spouse made a competing claim.

How Do I Resolve a Life Insurance Beneficiary Dispute in Texas?

Our Texas life insurance firm handles beneficiary disputes involving current spouses, ex-spouses, and children. In Austin, we successfully resolved a dispute involving conflicting beneficiary designations.

Why Would a Texas Accidental Death & Dismemberment Life Insurance Claim Be Denied?

Insurers often claim the death was due to illness or alcohol, not an accident. We recently fought a wrongful AD&D denial in San Antonio where a car crash was incorrectly labeled as natural causes.

Can a Life Insurance Policy Lapse Cause a Denial in Texas?

Yes, but Texas insurers must follow strict notice procedures. In Waco, we reversed a lapse-based denial by proving the company failed to send the required warning.

Can Alleged Misrepresentation on an Application Lead to Denial in Texas?

Yes, but only if it was material and intentional. In Corpus Christi, we overturned a denial based on an unrelated past surgery that didn’t impact the cause of death.

Can an Alcohol Exclusion Be Used to Deny a Texas Life Insurance Claim?

Yes, but only if alcohol directly caused the death. We recently won a case in El Paso where the insurer couldn’t prove intoxication played a role in the accident.

What Should I Do About a Denied ERISA Life Insurance Claim in Texas?

You must act fast. ERISA allows just one administrative appeal. We successfully appealed an ERISA claim for a Fort Worth widow by building a detailed evidentiary record.

What Do I Do If My Claim Was Denied During the Contestability Period in Texas?

Even within two years, the insurer must prove the misstatement mattered. In Lubbock, we challenged a contestability denial based on a minor income misstatement.

What If I Received a Denial Letter Citing Texas State Law?

Insurers often misinterpret Texas insurance law. We recently reversed a denial in Beaumont where the insurer wrongly cited Texas contestability rules.

Which Texas Life Insurance Companies Are Known for Denying Claims?

Texas Life Insurance Company and Texas Legacy Insurance have faced numerous disputes. We pursue claims against all insurers statewide, big and small.

Does Texas Revoke Ex-Spouse Beneficiary Rights After Divorce?

Yes. Unless reaffirmed, divorce automatically revokes an ex-spouse's rights in Texas. We protected a surviving spouse’s claim in a Tyler case where an ex tried to collect.

Is Texas a Community Property State, and How Does That Impact Life Insurance?

Yes. If premiums were paid with community funds, a surviving spouse may have rights even if not named. We handle these complex claims across Texas.

Can a Texas Will Override a Life Insurance Beneficiary Designation?

No. The policy controls. In Midland, we protected a daughter's beneficiary claim despite a conflicting will favoring the decedent’s new spouse.

How Much Does a Texas Life Insurance Attorney Charge?

We work on a contingency basis. You pay nothing unless we recover money for you.

Can a Life Insurance Claim in Texas Be Denied for a Death Abroad?

Yes, but exclusions must be clear. We successfully fought a denial in McAllen where a vague foreign death exclusion was improperly cited.

Can a Beneficiary Change Made Shortly Before Death Be Challenged in Texas?

Yes. Suspicious last-minute changes are often contested. We challenged a sudden beneficiary change in Plano and restored the original designation.

What If My Texas Life Insurance Claim Is Being Delayed With No Resolution?

Delays without cause can amount to bad faith under Texas law. We recently secured additional compensation for a delayed claim in Brownsville.

Can a Texas AD&D Claim Be Denied by Calling the Death “Natural Causes”?

Yes, but we often reverse these tactics. We won an AD&D case in Sugar Land by proving the death was accidental, not natural.

What If a Texas Insurance Agent Made an Error on the Application?

If the agent made the mistake, the insurer may still be liable. We successfully disputed a denial in Abilene based on an agent's error in recording medical history.

What Qualifies as Bad Faith in a Texas Life Insurance Denial?

Bad faith includes unjustified denials, misrepresentations, and failing to investigate. We pursue damages beyond the original death benefit when insurers act in bad faith.

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

Yes. We often overturn contestability period denials when the alleged misstatements are irrelevant to the insured’s death.

Are ERISA Group Life Insurance Claims Harder to Win in Texas?

Yes, but we have deep experience. We prepare strong ERISA appeals and litigate in federal court when necessary.

What If No Beneficiary Was Listed on the Texas Life Insurance Policy?

If no beneficiary is named, the proceeds typically pass to the estate. We help Texas families navigate probate to recover the benefit.

Can a Suspicious Beneficiary Change Be Disputed in Texas?

Absolutely. We challenged a suspicious change in Amarillo and restored the intended beneficiary designation.

Are Texas Insurers Required to Provide Notice Before Canceling a Policy?

Yes. Proper notice is essential. We reinstated a lapsed policy in Laredo by proving the insurer skipped critical notice requirements.

How Are Union and Group Life Insurance Policies Handled in Texas?

Many fall under ERISA. We review plan documents and challenge wrongful denials based on administrative mistakes.

Can Multiple People Claim the Same Life Insurance Policy in Texas?

Yes. When disputes arise, insurers often file interpleaders. We represent clients in these Texas interpleader actions to secure their rightful share.

What If the Insured Was Missing Before Being Declared Dead in Texas?

Once a court declares legal death, the claim can proceed. We help families with both the legal and insurance steps involved.

How Long Do I Have to Appeal a Denied Life Insurance Claim in Texas?

Most ERISA appeals must be filed within 180 days. State-governed policy appeals may vary, but acting quickly is crucial.

Can a Verbal Promise Override a Written Life Insurance Policy in Texas?

No, written designations control. However, in cases involving fraud, we sometimes pursue equitable remedies.

Are Life Insurance Proceeds Safe From Creditors in Texas?

Yes, if a living beneficiary is named. If the estate receives the proceeds, creditors may access the funds.

Can Vague Policy Wording Lead to a Denial in Texas?

Yes, but Texas law requires ambiguous policy language to be interpreted in favor of the insured or beneficiary.

Can a Lapsed Life Insurance Policy Still Be Enforced in Texas?

Yes. If the insurer didn’t comply with notice or grace period rules, we may overturn the lapse and recover benefits.

What If My Life Insurance Claim Was Denied for Non-Payment in Texas?

We check whether the insurer followed Texas law. In many cases, non-payment denials are successfully challenged.

Can a Child Receive Life Insurance Benefits in Texas?

Yes, but a court-appointed guardian or trust is usually needed to manage the funds until adulthood.

Can a Texas Claim Be Denied for Alleged Fraud?

Only if proven. We routinely challenge weak fraud accusations and secure benefits for rightful claimants.

Can a Texas Life Insurance Dispute Be Resolved Without Going to Court?

Yes. Many cases are resolved through negotiation, but we are fully prepared for litigation if needed.

What Happens If a New Beneficiary Form Was Filled Out but Never Submitted in Texas?

If the change wasn’t processed, it may not be valid. We investigate and advocate for the insured’s true intent.

Are Older Life Insurance Policies Still Valid in Texas?

Yes. As long as the policy was in force when the insured died, even decades-old policies remain enforceable.

How Do I Prove I’m the Rightful Life Insurance Beneficiary in Texas?

We compile all relevant documents, witness statements, and policy records to present a strong case and secure your rightful benefit.

2025 Texas Denied Life Insurance Claims: settlements & verdicts

Below are examples of Texas life insurance claims successfully resolved.

Pacific Life’s COVID-19 death denial was overturned, resulting in a successful settlement of $203,000 by clarifying policy terms on pandemic coverage.
A Texas school shooting-related denial was successfully contested, securing $107,000 through litigation addressing ambiguous criminal act exclusions.
North American Life’s denial citing a sickness exclusion was successfully challenged, recovering $244,000 after clarifying ambiguous policy language.
An Accidental Death & Dismemberment (AD&D) denial in Texas was successfully resolved, securing $450,000 by proving ambiguities in accidental death clauses.
A denied SGLI claim due to beneficiary disputes was favorably resolved, recovering $403,200 through clear documentation of beneficiary designations.
Farmers Life’s felony exclusion denial was overturned, resulting in a $122,000 settlement by proving insurer misapplication of criminal act exclusions.
Colonial Life’s alcohol-related denial was contested successfully, recovering $57,000 by demonstrating alcohol was not the direct cause of death.
A Texas mass shooting death claim denial was overturned, recovering $40,000 through clarifying policy exclusions related to violent crimes.
Legion Life’s denial due to policy lapse was successfully contested, recovering $35,000 by establishing insurer procedural errors.
Executive Life’s refusal to pay death proceeds was challenged successfully, securing $98,000 by proving insurer negligence.
Confederation Life’s denial based on sickness exclusion was reversed, recovering $77,000 through litigation clarifying policy terms.
Lincoln Benefit’s delay in benefits payout was successfully contested, recovering $40,000 by proving unreasonable delays.
Amalgamated Life’s delayed check issue was resolved favorably, securing $129,000 by demonstrating insurer administrative errors.
An AD&D denial due to drug involvement was successfully contested, recovering $54,000 by clarifying accidental death circumstances.
Ethos Life’s grace period dispute was resolved, securing $17,000 by proving insurer error.
Mutual Security’s denial involving asphyxiation death was overturned, recovering $51,000 through litigation clarifying accidental death clauses.
Colorado Bankers Life’s denial due to policy lapse was successfully contested, recovering $26,000 by proving insufficient notification.
Ameriprise’s heroin overdose denial was contested successfully, recovering $40,000 by demonstrating accidental death.
Mutual Benefit’s failed payout was successfully challenged, securing $18,000 by proving administrative oversight.
Freedom Life’s interpleader lawsuit was won by beneficiaries, securing $109,000 through clear entitlement documentation.
American Chambers Life’s delayed payout was resolved, recovering $70,000 through legal advocacy.
Everyday Life’s payout denial was successfully contested, securing $33,000 by demonstrating insurer procedural failures.
Legion Life’s interpleader case was won, recovering $100,000 by proving rightful beneficiaries.
First Capital Life’s contested claim involving a daughter was successfully resolved, securing $28,000 through clear entitlement.
USAA Life’s denial involving accident versus suicide was contested successfully, recovering $54,000.
Guaranteed Universal’s denial was overturned, securing $20,000 through litigation.
OPM Life’s beneficiary dispute was favorably resolved, recovering $62,000 by clarifying beneficiary intent.
Dearborn Life’s denial involving policy riders was successfully challenged, securing $55,000.
First Colony’s dispute involving wife versus girlfriend was resolved favorably, recovering $78,000.
PHP Life’s prescription drug denial was overturned, securing $92,000 by clarifying cause of death.
TIAA CREF’s denial based on health history was contested successfully, recovering $53,000.
AM Income Life’s misrepresentation denial was overturned, recovering $29,000 by establishing no fraudulent intent.
Prosperity Life’s contestability period issue was resolved, recovering $60,000.
Mutual Savings Life’s denial due to drugs and alcohol was contested, recovering $41,000.
HDFC Life’s beneficiary form dispute was resolved, securing $50,000.
AIG Life’s denial involving policy changes via POA was successfully contested, recovering $72,000.
Midland National’s alcohol exclusion denial was successfully overturned, securing $262,000.
CIGNA’s three policy exclusions denial was contested, securing $103,700.
Pioneer Security’s beneficiary change dispute was favorably resolved, recovering $301,400.
A major Texas denied life insurance claim totaling $3,000,000 was successfully litigated, emphasizing insurer procedural errors.
Foremost’s undue influence beneficiary dispute was resolved, securing $203,000.
HSBC’s accidental death claim denial was successfully contested, securing $412,000.
Reliance Standard’s prescription drug exclusion denial was overturned, recovering $214,900.
A FEGLI appeal resulted in a successful outcome, securing $131,000.
Another substantial Texas denied claim totaling $2,800,000 was resolved through litigation.
Standard’s beneficiary dispute was favorably resolved, recovering $349,000.
A Texas bad faith life insurance claim denial was resolved favorably, securing $931,000.
Gerber Life’s suicide/self-inflicted injury denial was overturned, securing $317,000.
A Texas divorce-related life insurance claim was successfully resolved, clarifying post-divorce rights.
Aviva’s denial involving autoerotic asphyxiation was contested successfully, securing $309,000.
Western Southern’s medical records denial was overturned, recovering $282,000.
An SGLI ex-spouse versus spouse dispute was favorably resolved, recovering $400,000.
American General’s interpleader lawsuit was won, securing $335,000.
Another Texas bad faith life insurance denial was resolved, securing $903,500.
Primerica’s felony exclusion denial was overturned, recovering $272,000.
AIG’s autoerotic asphyxiation denial was successfully contested, securing $414,000.
Principal Life’s alcohol exclusion denial was overturned, recovering $302,000.

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

Legal References – Texas

Texas Contestability Clause Law: Under Texas Insurance Code § 1101.006, life insurance policies 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: According to Texas Family Code § 9.301, a divorce or annulment 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 policy explicitly states otherwise.
Community Property Laws: Texas is a community property state. Life insurance policies purchased during the marriage with community funds are considered community property. Upon the death of one spouse, the surviving spouse may be entitled to half of the policy proceeds, unless the policy was purchased with separate funds or designated otherwise.
ERISA & Group Policies: Employer-provided life insurance policies governed by the Employee Retirement Income Security Act of 1974 (ERISA) may preempt Texas's community property laws. In such cases, the beneficiary designation on the policy typically determines who receives the proceeds, regardless of state community property rules.

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.