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Life Insurance Claim Denials: 3 Common Reasons for Denials

Shawn E. McDermott

Life insurance claim denials can be disheartening, but they are not necessarily the final word in a claim, as beneficiaries can appeal denials when they think that insurance companies have made wrong decisions. In fact, by fighting back after wrongful life insurance claim denials, people can recover the benefits payable under the policy.

When Insurance Companies Issue Life Insurance Claim Denials

Here’s a look at a few of the most common reasons for life insurance claim denials:

  1. There was an alleged material misrepresentation on your initial application – With this reason for life insurance claim denials, insurance companies may argue that you made mistakes or left out important information on your initial insurance application.However, the language on applications is not always clear, agents may have misinformed you or other factors beyond your control may have contributed to the alleged material misrepresentation. Presenting these facts to insurers can be a valid way to contest these wrongful denials.
  2. A loved one passed away during the contestability period – The contestability period is a short window of time – usually one to two years – that starts on the date on which the policy goes into effect. During this period, insurance companies may have more leeway to issue life insurance claim denials – and they can be far more motivated to do so, as the payable amounts on these policies will greatly exceed any premiums already collected.
  3. The manner of death was not covered by the policy –Life insurance policies should clearly outline what manners of death would not be covered (for instance, suicide is usually a non-covered manner of death). However, the language in these policies is not always clear, insurance companies may be misinformed about the facts of the death, or other reasons lead to this reason being wrongfully used to issue life insurance claim denials.


Of course, there can be any number of other reasons that insurance companies issue life insurance claim denials, so it’s advised that you contact an attorney if your life insurance claim has recently been denied.

After Life Insurance Claim Denials…

After life insurance claim denials:

  • Insurance companies are legally required to provide policyholders with reasons for why their claims were denied.
  • Policyholders often have the opportunity to appeal these denials, but there can be some time limits for doing so. If the policy was issued as an employee, the federal ERISA laws mandate that an appeal is required. Such an appeal must be properly and completely prepared to protect your claim and greatly increase your ultimate chance of a successful outcome.
  • Retaining an experienced life insurance lawyer like Denver Attorney Shawn McDermott will be crucial to protecting your rights, effectively standing up to insurers and positioning your insurance claim for success.

You Can Trust a Denver Life Insurance Lawyer at McDermott Law, LLC

Has your life insurance claim been denied? If so, you can turn to Denver LTC Insurance Attorney Shawn E. McDermott for experience in standing up to insurers and appealing or even litigating your claim denial. Dedicated and experienced, Shawn McDermott has a record of success when it comes to helping people:

  • Fight denied insurance claims
  • Navigate the complexities of the legal system
  • Stand up to insurers
  • Ultimately obtain the benefits they need and deserve.


To learn more about how the life insurance denial attorneys at McDermott Law, LLC can help you, set up a complimentary consult with our office today by calling us at 303-964-1800 or by emailing us using the contact form on this screen.

From our offices in Denver, we provide the highest quality legal services to people throughout the state of Colorado, the surrounding states and nationwide.

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