Life Insurance Resource Center

If you are a beneficiary or believe you are entitled to life insurance benefits, you need to submit a death certificate and life insurance claim form to your loved ones life insurance company. If you do not receive a check for the policy benefits within 30 days, you need to contact an attorney immediately. Other than a death certificate and life insurance claim form, do not submit any other documentation to a life insurance company without first speaking with a lawyer. Sometimes, life insurance companies will request documents and medical records to which they are not entitled. The only reason for doing so is because your life insurance company is looking for a way to deny your life insurance claim. Never deposit a check for reimbursed premiums without first consulting a lawyer. Brochu Law will review your claim, policy, death certificate, questionnaire, and medical records to determine the best strategy moving forward.

Submit Your Life Insurance Claim Information

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Overview

Life insurance policies are intended to provide financial security to family members after the passing of a loved one. Unfortunately, life insurance companies are more concerned with making money than the well-being of their policyholders or beneficiaries. Having your life insurance claim delayed or denied can cause additional stress both mentally and financially during this already difficult time.

When a claim is delayed or denied, the beneficiary will be faced with the challenge of appealing the claim. Life insurance claim delays, denials, and interpleader lawsuits are often complex legal issues that result in litigation. Always consult with an attorney that handles life insurance cases.

Recognizing a Delayed Claim

The primary tactic that insurance companies use to avoid paying out on a claim is by delaying payment. If an insurance company had a basis to deny the claim, they generally would do so in writing within 30 days. Typically, life insurance companies will pay proceeds upon receiving documentation (death certificate, coroner report, etc.). As a result, if you submit documentation and the insurance company does not pay, the insurance company may be trying to delay your claim.

Reasons for Delayed/Denied Life Insurance Claims

1. The death occurred within the policy’s contestability period

Contestability is the insurance company’s means to investigate the deceased insured’s medical records and background information. If death occurs within two years from the effective date of the policy, the insurance has the right to contest the policy.

When contesting a policy, insurance companies are often looking for any false or misleading information that can be considered material misrepresentation. When completing the life insurance application, the insured is required to provide information such as age, weight, income, health, and criminal history. While contesting the policy, if any of the provided information that affects risk is false or misleading, the insurance company may use this as an opportunity to cancel the policy and deny the claim. Insurance companies will also try to use the contestability period to deny a valid claim, even if misrepresentation or non-disclosure on the application is not material.

 

2. Unpaid policy premiums resulting in a lapse in payment

A life insurance policy is only valid for as long as premiums are paid. If no premium payment is made when due, a policy may lapse or be terminated completely. Insurance companies will often use nonpayment of a premium as a reason to deny a claim. However, as a policyholder or beneficiary, you are entitled to question whether the insurance company sent the premium due notice to the correct address and if a warning of potential policy lapse was provided.

 

3. No beneficiary designation on file

If the insured fails to name a beneficiary, the insurance company may try to use this as a reason to deny the life insurance claim. All policies contain specific language on who should receive the policy proceeds in the event that no beneficiary is named. If no beneficiary is named and the policy does not define how proceeds should be paid out, they should be paid in accordance with the law of the state where the policy was taken out.

 

4. Beneficiary on the policy is a minor

If a minor is listed as a beneficiary on a policy, a life insurance claim may be delayed because the minor has not reached the age to receive the proceeds without a guardian. If listing a minor as a beneficiary, ensuring that proper guardianship documents are filed will help speed up the process of payment on a claim.

 

5. Beneficiary was changed after a divorce

If you have gone through a divorce, it is important to ensure your beneficiary is updated. Most states will revoke a former spouse as a beneficiary automatically in accordance with state and federal laws. However, due to the complexity of these laws, insurance companies will often use this as a reason to deny your claim.

 

6. Employer failed to submit a waiver of premium

If an employee elects to participate in a company-provided life insurance program, they will likely enroll in a group life insurance plan. Most life insurance denials are caused by the employer not submitting a waiver of premium, which protects an employee’s life insurance policy from lapsing during illness, serious injury, or total disability. If the employer fails to submit the necessary documentation to the insurance company, it can leave a lapse in coverage and a denied life insurance claim.

Life Insurance Laws by State

Below is a short list of basic life insurance laws by state that may affect your life insurance policy. If you have questions about your specific policy coverages, your life insurance agent should be able to provide more specific information regarding your plan.

Legal Disclaimer: This information is for educational purposes only and should not be followed as legal advice. Life insurance laws are complex, and your own life insurance policy may be subject to additional laws beyond the ones mentioned here.

Alabama
  • Alabama’s life insurance laws are governed by Title 27 of the Code of Alabama
  • 10-day free look period (AL Admin Code 482-1-131-.03)
  • 30-day grace period (AL 27-15-3)
  • For claims not paid within 30 days, insurers must pay interest starting from receipt of proof of death (AL 27-15-13)
  • Alabama Life & Disability Insurance Guaranty Association guarantees up to $300,000 in death benefit payments and $100,000 in cash value per individual if your insurer goes out of business
Alaska
Arizona
  • Arizona’s life insurance laws are governed by Title 20 of the Arizona Revised Statutes
  • 10-day free look period (AZ Admin Code R20-6-209)
  • 30-day grace period  (AZ 20-1203)
  • Claims must be paid within two months (AZ 20-1215)
  • For claims not paid within 30 days, insurers must pay interest starting from receipt of proof of death (A 20-462)
  • The Arizona Life and Disability Insurance Guaranty Fund guarantees up to $300,000 in death benefit payments and $100,000 for lost cash surrender value
Arkansas
California
  • California’s life insurance laws are governed by the California Insurance Code
  • 10-day free look period (CA Ins. Code 10127.9)
  • 60-day grace period (CA 10113.71)
  • Companies are required to pay accrued interest starting from the date of death if payment takes longer than 30 days (CA 10172.5)
  • California Life & Health Insurance Guarantee Association guarantees up to $300,000 for lost death benefit payments and $100,000 for lost cash surrender value
Colorado
Connecticut
Delaware
  • Delaware’s life insurance laws are governed by Title 18 of the Delaware Code
  • 10-day free look period (18 DE ADC 1203)
  • 30-day grace period (18 DE ADC 2906)
  • Insurance companies must pay out death benefits within 30 days and add interest starting from the time the claim is filed (18 DE ADC 2914)
  • Delaware Life & Health Insurance Guaranty Association guarantees up to $300,000 for lost death benefits and $100,000 for lost cash surrender value
District of Columbia (Washington D.C.)
Florida
Georgia
Hawaii
Idaho
  • Idaho’s life insurance laws are governed by Title 41 of Idaho Statutes
  • 20-day free look period (ID Code 41-1935)
  • 30-day grace period (ID 41-1904)
  • Timely payment of claims is required within two months of the receipt of proof of death (ID 41-1913)
  • Insurers must pay interest on claims not paid within 30 days (ID Code 41-1337)
  • Idaho Life & Health Insurance Guaranty Association guarantees up to $300,000 for lost death benefits and $100,000 for lost cash surrender value
Illinois
Indiana
Iowa
  • Iowa’s life insurance laws are governed by Title 13 of the Iowa Code (Chapters 505 to 523)
  • 10-day free look period (IA Admin Code 191-15.9)
  • The insurance company is required to pay accrued interest on the proceeds if the claim takes longer than 30 days to settle (IA 511.38)
  • Iowa Life & Health Insurance Guaranty Association guarantees up to $300,000 for lost death benefits and $100,000 for lost cash value
Kansas

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Kentucky

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Louisiana
  • Louisiana’s life insurance laws are governed by Title 37 of the Louisiana Administrative Code
  • 10-day free look period (LA Rev Stat. Ann. 22:931)
  • 31-day grace period (LA 37:8305)
  • The insurance company must pay claims within 30 days of receipt of proof of death (LA 22:1892)
  • Interest accrues on claims that take more than 20 days to settle (LA 22:908)
  • Louisiana Insurance Guaranty Association guarantees up to $500,000 per occurrence
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
  • Montana’s life insurance laws are governed by Title 33 of the Montana Code
  • 10-day free look period (MT Code Ann. 33-15-415)
  • 30-day grace period  (MT 33-20-104)
  • Insurers must pay claims within 30 days, which can be extended to 60 days if the insurance company makes a reasonable request for more time to review (MT 33-18-232)
  • Claims that take longer than 30 days to settle are subject to interest (MT 33-20-114)
  • Montana Life & Health Insurance Guaranty Association guarantees up to $300,00 for lost death benefits and $100,000 for lost cash surrender value
Nebraska
Nevada
  • Nevada’s life insurance laws are governed by Title 57 of the Nevada Revised Statutes
  • 10-day free look period (NV ST 688A.010)
  • 30-day grace period (NV 688A.060)
  • Insurers must pay claims within two months after receiving proof of death (NV 688A.140)
  • Claims that take longer than 30 days to settle are subject to interest (NV 688A.410)
  • Nevada Life & Health Insurance Guaranty Association guarantees up to $300,000 for lost death benefits and $100,000 for lost cash surrender value
New Hampshire
  • New Hampshire’s life insurance laws are governed by Title 37 of the New Hampshire Revised Statutes
  • 10-day free look period (NH Code Admin. R. Ins 401.05)
  • 31-day grace period for all payments following the first one (NH 415:18)
  • Your insurance company is required to pay the amount to the beneficiary within 30 days after the provider receives proof of death, and they must pay accrued interest on the proceeds for any late settlements (NH 408:10-a)
  • New Hampshire Life and Health Insurance Guaranty Association guarantees up to $300,000 for lost death benefits and $100,000 for lost cash surrender
New Jersey
  • New Jersey’s life insurance laws are governed by Title 17 of the New Jersey Statutes
  • 10-day free look period (NJ Stat. Ann. 17B:25-2.1)
  • 30-day grace period (NJ 17B:25-3)
  • Your insurance company is required to pay out the death benefit within 60 days, after which it accrues interest (NJ 17B:25-11)
  • New Jersey Life and Health Insurance Guaranty Association will compensate you for up to $500,000 in lost death benefits and up to $100,000 in lost cash surrender value
New Mexico
New York
North Carolina
North Dakota
Ohio
  • Ohio’s life insurance laws are governed by Title 39 of the Ohio Revised Code
  • 10-day free look period (OH Rev. Code Ann. 3901-6-03)
  • One-month grace period for every payment after the first (OH 3915.05)
  • Claims accrue interest beginning from the date of death (OH 3915.052)
  • Ohio Life & Health Insurance Guaranty Association guarantees up to $300,000 for lost death benefits and $100,000 compensation for cash surrender value
Oklahoma
Oregon
Pennsylvania
  • Pennsylvania’s life insurance laws are governed by Title 31 of the Pennsylvania Code
  • 10-day free look period (40 PA ST 510c)
  • 31-day grace period (31 PA 82.24)
  • If the claim takes longer than 30 days to settle, the insurance company is required to pay accrued interest on the proceeds, dating back to the death of the insured person (40 PA ST 511b)
  • Pennsylvania Life & Health Insurance Guaranty Association guarantees up to $300,000 for lost death benefits and $100,000 for lost cash surrender
Rhode Island
South Carolina
South Dakota
Tennessee
  • Tennessee’s life insurance laws are governed by Title 56 of the Tennessee Code
  • 10-day free look period (TN Admin Code 0780-01-40-.02)
  • 31-day grace period for all payments except the first one (TN 56-7-2305)
  • Insurers are required to pay interest on death benefits beginning 15 days after the insured’s death (TN 56-7-315)
  • Tennessee Life & Health Insurance Guaranty Association guarantees up to $300,000 for lost death benefits and $100,000 for lost cash surrender value
Texas
Utah
Vermont
  • Vermont’s life insurance laws are governed by Title 8 of the Vermont Statutes
  • 10-day free look period (VT Admin Code 4-3-4:3)
  • 30-day grace period (8 VT 3731)
  • The insurance provider is required to pay the death benefit to the beneficiary within 30 days of receiving proof of death (8 VT 3731)
  • Claims accrue interest beginning from the date of death (8 VT 3665b)
  • Vermont Life & Health Insurance Guaranty Association guarantees up to $300,000 for lost death benefits and $100,000 for lost cash surrender value
Virginia
Washington
West Virginia
Wisconsin
Wyoming
  • Wyoming’s life insurance laws are governed by Title 26 of the Wyoming Statutes
  • 30-day free look period (WY Admin Code Ins Gen Ch 12 §4)
  • 31-day grace period (WY 26-17-111)
  • If the claim takes longer than 45 days to settle, the insurer must pay interest beginning from the date of death (WY 26-16-112)
  • Wyoming Life & Health Insurance Guaranty Association guarantees up to $300,000 for lost death benefits and $100,000 for lost cash surrender

F.A.Q.s

General

How much does a life insurance attorney cost?
We represent our life insurance claim clients on a contingency fee basis. There is no fee unless you win. We advance all costs on behalf of our clients.
Do you offer free consultations?
Yes! Each life insurance claim case is unique in its own ways. We would love to speak with you and provide the best strategy for your situation.
What life insurance companies have your clients made claims against?
  • Metlife
  • Prudential
  • Transamerica
  • AIG
  • Pruco
  • Minnesota Life
  • Allstate
  • Globe
  • Independent Order of Foresters
  • Primerica
  • CMFG
Do I have to live in Florida for Brochu Law to take my case?
No. Brochu Law takes cases in all 50 states regardless of life insurance company or location of beneficiary. No matter where you live in the United States, Brochu Law can represent you. Christopher J. Brochu is licensed in the state of Florida. Brochu Law uses local counsel outside of Florida in accordance with state and federal law.

Life Insurance

What questions should I ask when hiring a life insurance attorney?

Questions to ask before hiring a life insurance attorney:

      • Have you ever litigated a life insurance case before?
      • Have you ever sued a life insurance company before?
      • Have you ever argued and been paid in full for a life insurance policy?
      • Have you ever taken a life insurance case to trial?
      • Have you ever won a life insurance case at trial?
      • How many six-figure plus life insurance cases hae you settled or won?
      • Have you ever contested a life insurance policy before?
      • Have you ever represented a beneficiary in a life insurance case before?
      • Have you ever represented a minor in a life insurance case before?
      • Have you ever represented a minor in a life insurance case before?
      • Have you ever represented a ex-spouse in a life insurance case before?
      • Have you ever represented a mentally incapacitated adult in a life insurance case before?
      • Have you ever litigated a Federal Employees Group Life Insurance policy?
      • Have you ever litigated a Servicemembers’ Group Life Insurance policy?
      • Have you ever litigated a Veterants Group Life Insurance policy?
      • Have you ever litigated an interpleader lawsuit?
Why was my AD&D claim denied?

AD&D policies are often denied because AD&D policies have large payouts, with nominal premiums. Life insurance companies make money by denying claims. The less an insurance company pays, the more money they make. Life insurance companies delay and deny claims all the time hoping that you will not hire an attorney to fight their decision. The insurance company wants to tire you out and wants you to go away. Typically, AD&D policies carry the most amount of exclusions of any life insurance.

What types of exclusions life insurance companies look for?
    • Felonies
    • Self-inflicted injury
    • Sickness
    • Suicide
    • Mental and physical infirmity
    • Material Misrepresentation
    • Illegal Drugs
    • Prescription drug misuse
    • Alcohol

*** Just because a life insurance company has denied your claim due to an exclusion, it may be improper. Always consult an attorney before cashing a check for life insurance premiums.

What excuses do life insurance companies use to create an investigation?
    • Beneficiary designation problem
    • Third Party Claim
    • Contested Claim
    • Divorce
    • Beneficiary is a minor
    • Community property involved
    • Checking for a trust
    • Beneficiary dispute
    • Ex-spouse
    • Slayer
    • Murder
    • Manslaughter
    • Criminal Act
    • Misrepresentation
    • Undue Delay
    • Repeated request for documents
    • Cannot locate a beneficiary
    • Disclaimer

Didn’t find your answer? Reach out to us with your questions or schedule a free consultation!