If your loved one has passed away, you expect their life insurance policy to pay you. But when they deny the claim, you may be shocked. Here are a few of the common reasons why a life insurance company may deny a life insurance claim. 

Personal, Medical or Lifestyle Information Was Withheld

One of the key reasons why a life insurance claim may be denied is because the life insurance company believes that personal, medical or lifestyle information was withheld. If the withheld information was disclosed, they may not have chosen to insure your loved one. Some of the information that this may cover includes your loved ones real age, whether they were a smoker, what their true weight was or whether they had a medical condition, such as diabetes. If your loved one incorrectly answered personal, medical or lifestyle questions, the life insurance policy may be denied. 

The Cause of Death is Excluded Under the Policy

Another reason why a life insurance claim may be denied is because the life insurance company excluded certain causes of death and your loved one's death falls in this category. This may include causes such as suicide or drug overdoses. Additionally, if your loved one engaged in risky behavior, such as car racing or sky diving, the insurance company may have precluded accidents related to these risky activities. If your loved one died due to an excluded cause of death, the life insurance claim will be denied. 

Coverage Lapsed Due to Non-Payment

The last reason why the life insurance claim may have been denied is because payment was not made and coverage lapsed. If your loved one failed to make their premium payments, or if they took out a loan against their life insurance policy and failed to make those payments, the life insurance claim you file can be denied. Unfortunately, many families are unaware that the payments were not made until they get the denial in the mail. 

If a life insurance claim you filed with your loved one's life insurance claim has been denied and you disagree with the denial, a lawyer may be able to help you draft an appeal letter to the insurance company stating why they are in the wrong or file a lawsuit against them to help you recover the money you may be entitled to. If you suspect that the denial was incorrectly issued, consult with an attorney today, as you have a limited amount of time to file an appeal after a life insurance claim denial.