Frequently Asked Questions About Denied Life Insurance Claims

1. Can a life insurance company legally deny a claim after someone dies?

Yes — but only under specific circumstances. Common reasons include alleged misrepresentation during application, policy lapse arguments, beneficiary disputes, or coverage eligibility issues. Many denials are legally challengeable after review of the policy and claim file.

2. What is an interpleader lawsuit in a life insurance case?

An interpleader occurs when a life insurance company files a lawsuit asking a court to determine who should receive the death benefit — often due to competing beneficiary claims. These cases proceed in federal or state court and require immediate legal attention.

3. What if the life insurance policy was provided through an employer?

Employer-provided life insurance policies are often governed by
Employee Retirement Income Security Act of 1974 (ERISA).

ERISA claims have strict appeal deadlines, limited evidence rules, and are usually decided by federal judges rather than juries. Early strategy is critical.

4. How long do I have to appeal a denied life insurance claim?

For ERISA-governed employer policies, beneficiaries typically have 180 days to appeal. Private individual policies may have different contractual deadlines. Failure to appeal properly can significantly affect legal rights.

5. Do life insurance companies reverse denials?

Yes. Some denials are reversed during the appeal process, particularly when the administrative record is properly developed or when coverage provisions were misapplied.