We do not handle Social Security Disability (SSDI) claims.

Why are some life insurance claims denied?

Shawn E. McDermott

It can be devastating for Colorado families to have a life insurance claim denied. Life insurance policies are usually meant to help cover some of the costs of a funeral after the loss of a loved one. When those funds aren’t immediately available it can cause a lot of financial stress. There are things that can help ensure that your life insurance claim isn’t denied as well as actions you can take if it is.

Why are life insurance claims denied?

There are several different reasons why life insurance claims can be denied, including an incomplete or misleading application and failure to pay premiums. Either option can make it so that your claim is denied.

While you might be able to recomplete the application, a failure to pay premiums is a much harder fix. That’s why it’s important to pay all of your premiums on time and be sure to work with your life insurance company if you can’t make payments.

Can your health lead to a claim being denied?

Even if the application was okay and all of the premiums were paid in full, there are other reasons for the application to be denied. Believe it or not, the health of the person who deceased can be a contributing factor.

Some life insurance claim applications can be denied if the insured consumed alcohol or drugs before their death, depending on the state that you resided in. Your life insurance claim can also be denied if there’s suspicion that the insured died by suicide. It’s rare for a claim to be denied solely because of suicide; rather, a suicide or other death during the policy’s contestability period might trigger the application to be denied.

Having a claim denied isn’t the end, though, and sometimes partial payments are made available. Be sure to research all of your options when filing your claim.

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