31 Reasons for Life Insurance Claim Denials or Delays

PHILADELPHIA, PA / ACCESSWIRE / March 22, 2021 / Here are the 31 most common reasons that life insurance claims are denied. The life insurance lawyers from the Lassen Law Firm can fight every single one of these reasons, and we serve all 50 states.

1. Contestability Period. In most states this is 2 years and gives the life insurance company the right to investigate the application and medical records.
2. No Beneficiary. Claim might not be paid if beneficiary not named.
3. Last-Minute Beneficiary Change. Typically a new girlfriend, boyfriend, caregiver or person with a Power of Attorney may submit a change before death.
4. Disputed Beneficiary. One or more people dispute the named beneficiary.
5. Ex-Spouse Still Named as a Beneficiary and insurance companies will deny due to state laws which can cut off an ex-spouse.
6. Beneficiary Form Not Accepted. Many times a beneficiary change form was not accepted by the insurance company.
7. Misrepresentation on the application. Denial due to some medical issue wasn't disclosed on the initial application
8. Criminal Background Not Disclosed. Can be basis for denial.
9. Wrong Social Security Number or Wrong Age on Application. Another reason for denial
10. An Undisclosed Doctor or Hospital Visit. Your claim may be denied for this.
11. Lapse of Payment. If a payment wasn't received the claim may be denied.
12. Waiver of Premium. Denial caused by employer's mistake.
13. Suicide. Many deaths are denied due to suicide and/or self-inflicted injury.
14. Autoerotic asphyxiation. Deaths can be denied if deceased died during this act.
15. Felony. Claims can be denied if death happened during commission of a felony.
16. Prescription Drug Exclusion. A claim can be denied if a prescription drug was in the deceased's system such a fentanyl patch.
17. Illegal Drug Exclusion. Claims can be denied due to heroin overdose.
18. Alcohol Exclusion. Insured may have been driving drunk for example.
19. Murder. Beneficiaries can't collect if they murdered the insured.
20. Act of War. A civilian contractor can be denied if killed overseas.
21. Terrorism Exclusion. Many policies have terrorism exclusions.
22. Inherently Dangerous Activity. Claim denial due to car racing, bungie jumping, skydiving, aerobatic flying, cliff diving, scuba diving, etc.
23. Foreign Death. Insurance companies frequently deny foreign deaths as they may not believe the death certificate is authentic, etc.
24. Not a Known Risk. Insurance companies frequently deny claims of a death by a new illness such as a new Coronavirus, SARS, or COVID-19 stating that the illness was not around at the time of the policy.
25. Deceased Not an Employee at Time of Death. Insurance companies may deny work policies due to this.
26. Deceased Was on Sick Leave. Insurance companies can say work policy not in force.
27. Deceased Did not Change Policy from a Work Policy to a Portable, Personally Owned One. Can be a reason for denial.
28. Employer Cancelled Policy. Can be reason for a denied claim.
29. Employer Failed to Pay Premiums to Life Insurance Company. Many employers fail to pay the insurance company.
30. Employer Didn't List Employee as a Covered Employee. A typical reason for denial.
31. Insured of a Work Policy Aged Out. May deny if older than 26 years old for example.

The life insurance attorneys at the Lassen Law Firm can fight all these 31 most common reasons for denial will fight to get you the full policy amount.

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Call Attorney Christian Lassen at 1-800-900-2521 or Visit LassenLaw.com

SOURCE: The Lassen Law Firm