Common Reasons Life Insurance Claims Are Denied in Oklahoma

June 3, 2025

Insurance Companies Don’t Always React as Policyholders Expect

Individuals intentionally enroll in life insurance policies to help financially protect their loved ones in the event of their death. Nobody lives forever, and the loss of life often places intense monetary pressure on surviving family members. Funerals are expensive, and compensating for lost wages and benefits is overwhelming. Life insurance policies provide compensation to eligible beneficiaries that helps them manage these expenses.

Unfortunately, collecting a death benefit is not always simple. In fact, in many cases, life insurance companies deny these claims, leaving beneficiaries overwhelmed, frightened, and confused.

Death is a tragedy; having to manage an insurance claim denial as one is in mourning can be too much to handle.

It is important to recognize that a life insurance company claim denial can be appealed; their first response is not always their final answer. The first step in questioning your insurance company’s refusal is understanding the reason for the denial.

Because of the complexity of life insurance policy language and Oklahoma insurance law, the appeals process is best addressed with the assistance of a seasoned Oklahoma insurance attorney. It’s time to engage professional counsel as you move forward.

Addressing a Life Insurance Company’s Claim Denial

Life insurance companies know that most people who receive a claim denial will be disappointed and even angry but will not question the decision. They will simply move on with their lives, believing they were not entitled to the compensation defined in their policies. While some denials may be valid, many others are not. Many of these decisions are made in bad faith.

If you have made an insurance claim after the death of a loved one, and it has been denied, taking some time to identify and understand the reasons why is valuable; you may be entitled to a settlement.

Denials During the Contestability Period May Be Valid

Sadly, fraud is a very real problem for life insurance companies. As such, most insurance contracts specify a contestability period, an identified time frame (usually two years) after the start of coverage. During this time, the company can research and investigate the legitimacy of information provided in the policyholder’s original application.

In addition to fraud protection, identifying the accuracy of the details shared helps insurance companies adjust premiums when necessary. Incorrect information (like providing a lower weight or lying about smoking) may initially result in a reduced premium, one that does not align with the risk associated with the true details of your life. If your insurance company identifies missing or misrepresented information, it can adjust your premiums accordingly.

When life insurance claims are made during the contestability period, insurance companies tend to conduct thorough investigations. If there are no issues with the policy information or claim, it will be paid; but if discrepancies exist, the claim will likely be either adjusted (like a payout based on a question of age) or even denied.

After the contestability period ends, insurance companies lose the right to deny claims based on incorrect information (except in instances of non-payment or fraud). In general, life insurance policies then become more reliable.

Common Reasons Life Insurance Claims Are Denied in Oklahoma

Recognizing the host of reasons insurance companies give when they deny a life insurance claim is the first step in addressing your current situation. Below are some of the reasons most often provided.

• Coverage Lapse: This happens when policyholders fail to pay their premiums regularly. While most insurance companies offer a grace period, longer gaps of nonpayment can result in a declined claim. That said, insurance companies should notify policyholders of missed payments and provide them with 60 days to make good on their payments. Failure to do this and immediately cancelling a policy is a bad-faith action.
• Misrepresentation of Facts: In order to be granted coverage, potential policyholders must provide details regarding their health, habits, and activities. Lying about any of these (like age or weight) or failing to disclose certain hobbies (like scuba diving or skydiving) can be a reason an insurance company refuses to pay.
• Death During the Contestability Period: In general, life insurance policies include a two-year time frame during which they can review applications for discrepancies. If any are found, and death occurs, payment can be refused.
• Exclusions for Cause of Death: Policy exclusions are not uncommon and may include suicide or death as the result of illegal activities (like driving under the influence of drugs or alcohol).
• Inaccurate Beneficiary Information: Incomplete, outdated, or incorrect details regarding beneficiaries can complicate payment.

Quite often, the issues above are valid reasons for a claim denial, especially during the contestability period. But sometimes, denials can be made in error or bad faith. If you believe yours was, you should submit a letter of appeal, a process best undertaken with the guidance of an insurance bad faith claims attorney.

Has Your Life Insurance Claim Been Denied? Doug Terry Law Can Help

Experience and Knowledge Make a Difference

Doug Terry and his team are well-versed in handling cases involving denied life insurance claims. Since the founding of the firm in 1999, they have handled countless cases like this. Unfortunately, life insurance companies’ profitability goals often outweigh their loyalty to their policyholders, leading them to inappropriately deny reasonable claims more often than any of us would like to believe.

Engaging an insurance bad faith attorney to help manage a denied claims appeal can be a valuable investment. Insurance companies tend to respond more positively to policyholders with legal representation.

Known for providing compassionate and responsive service, Doug Terry Law has a reputation for success with denied life insurance claims; they know how to review denials and identify problematic responses.

Because they understand the tactics these organizations use, they are adept at addressing bad faith actions.

Losing a loved one is devastating. The surprise of a denied life insurance claim and the stress of managing an appeal are a lot to handle. The team at Doug Terry Law takes great pride in successfully managing these issues on behalf of their clients.

Take Action Today

In cases where life insurance claims have been denied, acting as quickly as possible is important. You want to provide your bad-faith insurance attorney the time to fully investigate your situation and take appropriate action on your behalf.

Doug Terry Law was founded to provide every person struggling with insurance denial the same quality legal support as their insurance companies. Closing this gap and helping clients resolve insurance claim issues are the firm’s primary goals.

In pursuit of this, the firm offers all clients a free consultation during which a team member will meet with them, review their case, and share their initial thoughts on resolution. Contact them today at 405-463-6362 to schedule yours and see how powerfully they can serve you.