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What to Do When Your Life Insurance Claim Denied

Mar 19, 2025

Life Insurance

What to Do When Your Life Insurance Claim Denied

A life insurance policy is meant to provide peace of mind, ensuring that your loved ones are financially supported in the event of your passing. However, when a life insurance claim is denied, it can create unnecessary stress and uncertainty during an already difficult time. Understanding why a life insurance claim denied and knowing what steps to take can help you confidently address the situation.

Let's explore the potential reasons for a claim denial and the actions you can take to resolve the issue.

Why Might a Life Insurance Claim Be Denied?

There are several reasons why life insurance claims can be denied. Some common reasons include:

  • Non-Disclosure of Medical Information

Life insurance applications require full disclosure of medical history. The claim may be denied if the insurer discovers that a pre-existing condition or inaccurate health information was not disclosed.

  • Missed Premium Payments

The policy can lapse if premium payments are missed and not made up within the grace period. In such cases, the insurer may deny the claim because the policy is inactive.

  • Contestability Period

Many life insurance policies have a contestability period (usually two years), during which the insurer can review the application for misrepresentation or fraud. If the policyholder dies within this period, the insurer may deny the claim based on their findings.

  • Policy Exclusions

Some policies exclude coverage for specific causes of death, such as suicide, criminal activity, or high-risk activities. If the cause of death falls under these exclusions, the claim can be denied.

Steps to Take When a Life Insurance Claim Is Denied

If your life insurance claim has been denied, it's essential to stay calm and take the following steps:

  • Review the Denial Letter

Start by carefully reviewing the denial letter. The letter should explain the reason for the denial and provide instructions on how to appeal. Understanding the reason behind the denial is essential to take the appropriate next steps.

  • Review Your Policy

Read your life insurance policy carefully to understand its terms, exclusions, and conditions. Familiarizing yourself with your policy details will help you assess whether the insurer's decision was justified.

  • Appeal the Denial

If you believe the denial was wrong, you can file an appeal. Gather supporting documents such as medical records, proof of premium payments, and other relevant evidence. Providing thorough documentation can increase the chances of overturning the decision.

  • File a Complaint with Your State Insurance Department

If the insurer refuses to reconsider the claim or believes they acted unfairly, you can file a formal complaint with your state's insurance department. The department can investigate your case and intervene to resolve the issue.

How to Handle a Denied Life Insurance Claim with John E. Peakes Insurance Agency?

Having a life insurance claim denied can feel like an overwhelming setback, but knowing your options and how to respond can help you resolve the issue. Understanding your rights and taking the proper steps can help you regain the coverage your family deserves, whether it's due to missed payments, non-disclosure, or policy exclusions.

At John E. Peakes Insurance Agency, we are committed to helping individuals and families with their life insurance needs. If you have concerns or questions about your life insurance policy, contact us today at 1-800-800-5199 to ensure you're fully covered and to get assistance handling any claims.