In most situations, failing to disclose information on your application will only lead to a life insurance claim denied during the contestability period. However, there are some claims that get denied for this reason after. Especially if the misinformation was intentional. 

These are some examples of hidden information that could lead to a life insurance claim denied.

• Hiding convictions for driving while intoxicated.
• Not disclosing past medical diagnosis.
• Dishonesty around family’s medical history.

There can be minor instances of misinformation such as dates of doctor appointments or a mistake with the address. These are unlikely to lead to a life insurance claim denied. 

Circumstance Of Death Wasn’t Covered

How the insured dies can affect whether or not a life insurance claim is denied. Policies exclude specific death types. Your policy may exclude the following types of deaths.

• Suicide
• Death doing something illegal
• Homicide
• Extreme or dangerous hobbies

Suicide is the most commonly excluded cause of death on life insurance policies. Though some life insurance claims get denied due to other reasons. This family was originally denied the death benefit because the father died while driving recklessly. 

Missed Premium Payments

You must keep up the agreement for the policy in order to receive the death benefit. If the insured allows the policy to lapse, whether intentional or not, the life insurance company can deny the claim. 

Signing up for automatic payments prevents this from happening. If you’re considering allowing your policy to lapse, you should know you have more options.  

The Employer Failed To Complete Necessary Paperwork or Communicate Benefits to Employees

Group life insurance is common in a lot of workplaces. With employer-provided life insurance programs, the employer’s responsible for sharing necessary information. To both the employees and the life insurance company. 

When this information doesn’t get communicated correctly, you may have a life insurance claim denied. A company doesn’t always communicate with its employees about who can have coverage or what would be covered in the event of a death. For example, the group insurance program may change without the employees knowing how it affects them. 

An employer may tell someone on disability they don’t need to pay their premiums. Unfortunately, their employer failed to submit the necessary paperwork to make that happen. The employee then loses coverage. 

Situations When The Death Benefit Payout is Delayed

There are a few situations where a life insurance claim isn’t denied, but there’s a delay in paying the death benefit. 

Unclear Beneficiary Information

Policies will ask for a primary beneficiary, secondary beneficiary, and additional final beneficiaries. In the event that a beneficiary dies before the insured, there’s still a remaining clear beneficiary. 

However, sometimes someone only lists a primary beneficiary. Or the beneficiaries have passed away. 

Sometimes the insured will list the beneficiaries of the policy as “children” or “relatives”. When there isn’t a specific person designated, the life insurance company will take longer to approve the death benefit. 

After a divorce or marriage, you need to update a life insurance policy. When this doesn’t happen, there could be a dispute over who will receive the death benefit. Thus requiring more time to sort out the policy. 

The Beneficiary Is a Minor