Life Insurance Disputes
Paying years for life insurance . . .
And then suffering the loss of a loved one . . .
Only to have the life insurance company refuse to pay a death benefit.
Challenging & Reversing Life Insurance Denials
The Problem. The denial of a life insurance claim can be devastating. But a denial does not necessarily mean the insurance company is right. Many denials are legally or factually incorrect, and beneficiaries have the right to challenge them in court.
The Solution. The lawyers at Sarraf Gentile LLP have decades of litigation experience and unique insight into how insurance companies operate. Ronen Sarraf previously served as senior trial counsel at a Fortune 500 insurer, and Joseph Gentile worked as a licensed broker for several life insurance companies. We know the products, the process, and how to win life insurance disputes.
Free initial consultations.
No fees unless successful.
Why Life Insurance Companies Deny Claims
Life insurance companies market themselves as honest and caring. But make no mistake: they are profit-driven businesses whose primary obligation is to shareholders, not policyholders. One way they increase profits is by delaying or denying claims.
While some denials are justified, others are based on flawed reasoning, bureaucratic obstacles, or outright bad faith. Those can—and should—be challenged.
The Four (4) Basic Types of Life Insurance
1. Term Life – Coverage for a fixed period (often 10–20 years). Pays a death benefit if the insured dies during the term.
2. Group Life – Term coverage offered through an employer or organization, often without individual medical underwriting. Sometimes included as a free employee/member benefit.
3. Whole Life – “Permanent” insurance that lasts a lifetime. In addition to a guaranteed death benefit, it builds cash value that grows annually and can be borrowed against tax-free.
4. Universal (or Variable) Life – Another form of permanent insurance. Offers flexible premiums and death benefits, with investment options for cash value. Often described as combining elements of term and whole life insurance.
Common Reasons for Delays & Denials
Insurance companies rely on several common arguments to deny claims—even after decades of premium payments:
Material Misrepresentation – Claiming the policyholder lied or erred on the application. A denial requires showing the misstatement was “material” (that the company would not have issued the policy if it knew the truth). Not all misstatements qualify. For example, misstating smoking status is material; a typo in a name is not. Importantly, some courts require the misrepresentation to relate to the cause of death.
Death During Contestability Period – Most policies allow denials based on misrepresentation if death occurs within the first 1–2 years. After that, policies generally become “incontestable” except in cases of outright fraud.
Suicide Exclusions – Nearly all policies exclude suicide during the first 1–2 years. After that period, benefits are typically payable.
Failure to Pay Premiums (Policy Lapse) – If premiums stop and any cash value is exhausted, coverage lapses. Insurers must give notice and a grace period (often 30 days) before denying benefits.
Late Claim Filing – Beneficiaries are usually required to file claims within the time stated in the policy. However, depending on state law, benefits may still be recoverable even if claims are late.
Exclusions – Some policies exclude certain activities (skydiving, mountain climbing) or causes of death (such as HIV). While less common in standard policies today, exclusions remain significant in accidental death & dismemberment (AD&D) policies.
Fighting Back
Beneficiaries are not powerless. Suing an insurance company can overturn delays and denials. Even the threat of litigation may prompt a settlement.
Key factors:
· The exact wording of the policy
· Representations by the selling agent
· Whether the insurer’s stated reason for denial holds up legally
Ambiguities in policies are usually resolved against the insurer, giving beneficiaries additional leverage.
The Steps to Strengthen Your Case
· Keep a Paper Trail. Save all correspondence, phone notes, and emails with the insurance company. Share these with your attorney. Never give a recorded statement without legal advice.
· Act Quickly. Deadlines apply. Engaging a lawyer early improves your chances.
· Hire the Right Lawyers. Experience matters. Life insurance disputes are technical and high-stakes.
Why Choose Sarraf Gentile LLP?
Free Initial Consultations: Always.
Contingency Fees: No hourly billing. We only get paid if we recover for you.
Experience & Expertise: We’ve litigated nationwide insurance disputes, including class actions. Our attorneys have insider insurance industry experience.
Fearless Advocacy: We regularly face Fortune 500 opponents in high-stakes cases.
Client-Centered Approach: We listen, communicate, and treat clients with empathy. Many clients become lifelong friends.
Collaborative Strength: We co-counsel seamlessly with other firms when it benefits our clients.