Life Insurance Claim FAQs
Frequently Asked Questions About Life Insurance Claim Disputes, Denials, and Referrals
Life insurance claims can be complex, especially when disputes arise. Whether you’re a beneficiary trying to collect benefits, an attorney exploring a potential case, or a lawyer with a case to refer, LawVine is here to help.
Below are answers to some of the most common questions about life insurance claims — from denials and delays to interpleader lawsuits and ERISA issues.
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What is a life insurance claim?
A life insurance claim is a request made to an insurance company to pay death benefits after the insured person has passed away. The claim is typically filed by a named beneficiary, a family member, or an estate representative.
How long does it take for a life insurance claim to be paid?
Most uncontested claims are paid within 30 to 60 days. However, delays can occur when the insurer contests the claim, investigates the cause of death, or invokes a policy exclusion.
What causes life insurance claims to be denied?
Common reasons for denial include:
- Material misrepresentation on the application
- Lapsed policy due to non-payment of premiums
- Exclusions, such as suicide or criminal activity
- Disputes over beneficiaries
- Contestability period investigations (within the first 2 years)
- Suspicion of fraud or foul play
- Death occurring outside the coverage scope (e.g., policy exclusions)
Can a denied life insurance claim be challenged?
Yes. Denials can often be appealed or contested through administrative processes or litigation. LawVine may help policy beneficiaries or their attorneys appeal, negotiate, or file lawsuits to challenge improper denials.
What is a life insurance interpleader?
An interpleader is a legal action where the insurance company deposits the death benefit into the court registry and lets the court decide who should receive the money. This typically happens when:
- There are competing beneficiaries
- A divorce or last-minute policy change raises questions
- The insurer believes paying the wrong person could result in legal exposure
LawVine has handled hundreds of interpleader matters and can assist or co-counsel in resolving these disputes.
What is “material misrepresentation”?
Material misrepresentation means the policyholder gave false or incomplete information during the application process that would have affected the insurer’s decision to issue the policy. For example:
- Not disclosing a health condition
- Lying about smoking or drug use
- Misstating income, age, or criminal history
These cases can be challenged if the information wasn’t relevant or if the insurer failed to perform due diligence.
Can a former spouse collect life insurance after a divorce?
It depends. Some states require specific waivers or court orders to remove an ex-spouse as a beneficiary. If the ex-spouse remains listed on the policy after divorce and the policy wasn’t updated or modified properly, it can lead to litigation.
LawVine accepts referrals in these cases and can advise attorneys on state-specific rules and ERISA preemption issues.
What is ERISA and how does it affect life insurance claims?
ERISA (Employee Retirement Income Security Act) governs most employer-sponsored life insurance policies. It:
- Preempts state laws, including some that revoke ex-spouses as beneficiaries after divorce
- Requires administrative appeals before a lawsuit can be filed
- Limits recovery in some cases to policy benefits only (no punitive damages)
Attorneys unfamiliar with ERISA may partner with LawVine to ensure compliance and maximize recovery for their clients.
Can I refer a life insurance claim I don’t want to handle?
Can I co-counsel with LawVine on a life insurance case?
Absolutely. If you’d prefer to stay involved, we welcome co-counsel relationships. LawVine has litigated life insurance cases in state and federal courts across the U.S., and we’re happy to work with referring counsel on strategy, pleadings, and resolution.
What kinds of life insurance cases do you accept?
We currently handle:
- Denied life insurance claims
- Delayed payment claims
- Interpleader lawsuits
- Cases involving multiple or conflicting beneficiaries
- ERISA-governed policy disputes
- Material misrepresentation and rescission cases
- Last-minute beneficiary changes, especially under suspicious circumstances
- Claims involving murder or application of the slayer statute
What courts does LawVine litigate life insurance claims in?
We file and litigate in both state courts and U.S. District Courts, particularly in:
- Florida
- New York
- New Jersey
- Southern and Middle Districts of Florida
- Eastern and Southern Districts of New York
We also work with local counsel in other states as needed through co-counsel arrangements.
I’m the beneficiary. The insurance company denied my claim. What now?
Do I have a time limit to contest a denial?
Yes. Every insurance policy and jurisdiction has specific statutes of limitations. ERISA claims also have administrative deadlines — sometimes as short as 60 or 180 days after denial.
If you’re an attorney or claimant, it’s critical to act quickly. Missing a deadline may bar your claim permanently.
Will it cost me anything up front?
LawVine handles life insurance claim cases on a contingency fee basis. That means:
- You pay no upfront legal fees
- We advance litigation costs
- You only pay if we recover funds for you
The same applies to referred cases — clients receive professional legal help without having to front costs.
How LawVine Helps You Win Life Insurance Disputes
🧠 Litigation Experience – Over 6,500 cases handled, including hundreds of life insurance disputes
⚖️ Dual Focus – State and federal court experience, including ERISA claims
🤝 Flexible Models – Co-counsel or referral only — we work with you
📈 Built for Scale – You get access to national-level resources and a litigation-ready legal team
