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Life Insurance Claim Denied? What to Do in Circumstance Of Death?

Was a Life Insurance Claim Denied?

What to Do in Circumstance Of Death?
Many people assume that they will not have their life insurance claim denied by the insurance company - that the insurer will pay their surviving family members no matter how they die – with the possible exception of suicide.

But in reality, most insurance policies deny claims for a number of reasons regarding circumstances of death.

While all life insurance policies are different, we have listed a few common circumstances and causes of death that may result in your life insurance claim denied by the insurer.

Life Insurance Claim Denied - What Are the Circumstances?


  • Suicide

Most life insurance policies do not pay if the cause of death was suicide; however, there are some instances when suicides ARE covered - call us to provide you with a completely free evaluation of the insurance company’s decision.

While suicide is a sensitive and complex death, insurers look at the technical-financial “business-inclined” possibilities that a person might do it for.

This clause prevents policy carriers from killing themselves in order to achieve financial security for their beneficiaries.

  • Criminal Activity

If the policyholder is killed while trying to break the law, the insurer will have to rule the life insurance claim denied.

The reason is practical and sensible.

For example, if the policyholder was trespassing, driving while intoxicated, or breaking into a building, the claim may be denied.

  • Drug or Alcohol Use

While addiction is now being considered as a psychological issue by some psychiatrists, insurers still consider dying of it as a reason for them to declare a life insurance claim denied.

If the policyholder died from an overdose, or if drugs or alcohol played a role in their death, the resulting life insurance claim may not be valid.

  • Reckless Behavior

Some insurance policies have a clause regarding reckless behavior or specific forms of reckless behavior as a basis for declaring a life insurance claim denied.

For example, some policies will not pay out on claims in which the claimant was participating in street racing.

  • Incarceration

Many life insurance policies are no longer valid when the person covered by the policy enters prison.

Some do not cover any death from any cause if the policyholder is in prison at the time of death.

While many of the above clauses exist for a reason, a valid denial based on the circumstances of death does not make the news easier to bear when it comes to family members and beneficiaries.

If you have had a life insurance claim denied for a family member or loved one, you should verify that the denial is appropriate.

Know that all insurance companies will try to give out as little money as they can to anyone. Their business model is to get money from many people and hope only a few will need the benefits back.

Most insurance companies will try to find any reason, big or small, to deny, delay, or underpay when you claim for what you deserve.

Getting insurance claims can be a hassle, especially when you are dealing with the loss of a loved one while his or her insurer is giving you a hard time.

You and your family deserve to grieve and not be bothered during such hard times. You do not deserve more stress from an insurance company that is acting in bad faith and trying to deny your claim for a lousy excuse.

Know your full rights when it comes to your insurance and make sure you will never have a life insurance claim denied for you or your family members and loved ones.

What you need is legal help, and we are always here to help you avoid having a life insurance claim denied.

To speak with one of our life insurance claim lawyers about your case, contact us today!

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