Life insurance is meant to provide peace of mind. Policyholders pay premiums for years so that their families and loved ones will have financial stability when the unexpected occurs. Unfortunately, for many Illinois families, that promise is broken when insurers delay or deny legitimate life insurance claims. At Vargas Gonzalez Delombard, our Illinois life insurance lawyers fight to ensure beneficiaries receive the benefits they are entitled to under their policies.
Why Life Insurance Claims Get Denied
Insurance companies rarely admit they are denying claims to protect their bottom line. Instead, they rely on technicalities, exclusions, or policy language to avoid accountability. Some of the most common reasons Illinois life insurance claims are denied include:
- Alleged misrepresentation on the application: Insurers may claim the policyholder failed to disclose a medical condition or other relevant information.
- Policy lapse: If premiums were missed—even unintentionally—insurers may argue the policy was no longer active at the time of death.
- Cause of death exclusions: Deaths related to certain activities, such as substance use or dangerous hobbies, may be excluded under policy terms.
- Contestability period issues: If death occurs within the first two years of the policy, insurers may closely scrutinize the application and deny claims over minor discrepancies.
- Employer-provided policy disputes: Group life insurance policies sometimes create confusion about coverage amounts or eligibility.
While some denials may be valid, many are based on weak arguments or bad faith practices designed to avoid paying rightful beneficiaries.
