What to Do If Your Life Insurance Claim Is Denied

May 19, 2025

Claim Denials Require Specific and Timely Response

Death is expensive, a fact that surprises many who are haven’t had to deal with the loss of a loved one. The combination of funeral expenses and lost monetary support from the deceased often leaves families in financial distress.

Life insurance is one way individuals plan for the inevitable. These policies are purchased to protect the financial stability of those left behind when someone passes away.

Unfortunately, payment on life insurance claims is not automatic; often, beneficiaries are surprised and concerned when their claims are denied.

Policyholders must recognize that they can appeal denied life insurance claims. However, the process can be complicated, so engaging a denied life insurance claims attorney can prove wise.

Knowing what to do and executing the tasks correctly can impact the appeal’s outcome. A seasoned professional knows how to manage situations like this, and insurance companies are more likely to resolve issues when policyholders or beneficiaries have legal representation.

It’s Time to Address Your Denied Life Insurance Claim

If you believe your life insurance claim has been wrongly denied, acting quickly and decisively is in your best interests. If the plan was employee-sponsored, you have 60 days to file an appeal, so time is valuable. Below are some steps to take in situations like this.

Examine the Life Insurance Policy

First, review the policy in full. The information provided in the policy can answer questions and confirm that you submitted your claim according to the insurance company’s requirements.

The wording in these policies can be technical; you may find yourself confused. Working with an Oklahoma denied life insurance claims attorney can be helpful. They are familiar with policy language and requirements and can ascertain more quickly if you have a plausible case for appeal.

Check the Time Frame of Submission

It is important to recognize the difference between a delay and a denial. Delays in the insurance industry are common, particularly during the contestability period (a two-year time frame after the policy is purchased when the insurer has a window to review and investigate policyholder-provided information). Your claim may be paid after a delay, but not always.

That said, delays must be reasonable. If extensive, it may be a sign of bad faith. A seasoned insurance claims attorney can review your situation and address timing with your insurance company on your behalf.

Identify the Denial Reason

To fully understand your options, you must recognize why your claim was denied. Some of the most common reasons include:

• Unpaid premiums: Insurance premiums must be paid by the policyholder. However, insurance companies should provide notice if a payment is missed, along with a grace period in which to pay all monies owed.
• False information: Policyholders are required to submit a host of information when purchasing a life insurance policy. Misrepresentation of certain personal information, like age, weight, habits (smoking), and hobbies (scuba diving), could either be a cause for denial or a recalculation of risk and benefits.
• Administrative Errors: These include not naming a beneficiary and not reporting life changes like relocating or marriage, divorce, and the birth of a child.
• Cause of Death: Some policies have exclusions for specific causes of death. These may include homicide, participation in certain risky activities (like skydiving), abusing drugs or alcohol, or suicide (during the contestability period). That said, if death by suicide is the case, you may be entitled to a refund of premium payments.

A denied claims attorney can help determine why your claim was refused, identify bad faith, and develop a plan for appeal.

Account for the Contestability Period

Life insurance policies often include a contestability period; in other words, a time frame during which the insurance company can investigate and review policyholder information. In general, this lasts two years from the initial date of coverage. The impetus for these periods is the significant fraud that occurs with respect to policies and claims.

Deaths during the contestability period will likely be carefully investigated. Insurance companies can use omissions, misrepresentation, and errors as reasons to deny claims or to recalculate the risk associated with the policyholder. If alive, an increase in premiums may be assessed, and if the individual has passed away, benefits may be decreased.

However, after this period ends, life insurance policies become more reliable and claims are harder to deny, except for cases involving intentional fraud or non-payment of premiums.

Do not assume that all denied claims during the contestability period are valid. Seasoned life insurance claims attorneys understand the parameters associated with life insurance policies and claims and can help with appeals during this time.

Address the Insurance Company

As with all insurance issues, communication in writing is important. If your denial letter is vague, request the reasons for the denial directly from the insurance company, in writing. When possible, ask for their reply in writing as well; email would work. You always want to have tangible proof of your interactions and timing with the insurance company.

Draft and Submit a Letter of Appeal

If, after you have reviewed all pertinent information, you believe your life insurance claim was inappropriately denied, you should write and submit an official request for appeal, a task your insurance lawyer can complete on your behalf.

In these documents, it is best to keep emotions under wraps — you want to communicate concisely and politely. Your appeal letter should include:

• Copy of the insurance policy
• Policyholder’s name
• Policy number
• Date of death
• Reasons for your appeal (clearly enumerated)
• Proof of premium payments
• Applicable medical records
• Copy of the denial letter.

You want to make sure to submit this appeal in a timely fashion and according to the requirements of the insurance company. Always keep a copy of your appeal and supporting documents, as well as delivery confirmation

Engaging Professional Representation Should Be a Priority

Doug Terry Law Knows What to Do if Your Life Insurance Claim Is Denied

Receiving notification that your life insurance claim has been denied is overwhelming. Losing a loved one is tragic; learning that the financial impact will be considerable can be too much to handle.

Correctly identifying the reason for these denials and addressing them effectively is complicated and time-consuming.

Engaging professional legal representation can be a valuable investment.

For decades, the team at Doug Terry Law, led by attorney Doug Terry, has been managing appeals for denied life insurance benefits on behalf of their clients. Their knowledge of the life insurance industry, combined with their experience, enables them to identify issues and submit successful appeals.

But their service goes far beyond the technical. They understand that their clients have suffered a great loss. Providing kind and empathetic service is one of the hallmarks of their approach. Time and time again, they are the first call for those struggling with insurance denials because of their stellar reputation.

Take Action As Soon as Possible

Because the window for appeal is not open forever, you want to begin the process as quickly as possible. Appeals filed after the deadline will not be heard. Now is the time to identify and engage a life insurance denied claims attorney.

The team at Doug Terry Law appreciates the urgency of these issues and is available to meet with all potential clients immediately. As a testament to their commitment to the community, they offer all potential clients a free consultation during which they can evaluate the validity of the claim denial. These meetings also provide potential clients with the opportunity to see how the team communicates and operates.

Always striving to maximize compensation while minimizing stress, Doug Terry Law works tirelessly on behalf of its clients. Contact them today at 405-463-6362 to learn how they may be able to help you.