Ten Things to Know About Life Insurance Lawsuits

Since 2001, we have helped hundreds of people who were wrongly denied life insurance payouts after the death of a loved one. Please contact us at 312-346-5320 for a free case review with a lawyer. We cover all of Illinois.

Insurance companies make money by limiting what they pay out on claims. It’s shocking, but it is not uncommon for life insurance companies to refuse to pay without a valid reason. When this happens, a lawsuit is how you solve the problem. Here are ten things to know about Illinois life insurance lawsuits.

1. Life Insurance Is a Contract
   When you buy a life insurance policy, you enter into a binding contract with the insurer: you pay premiums, and they agree to pay your beneficiaries when you die, provided the terms are met.
2. Beneficiaries Must File a Claim to Get Paid
   Payouts aren’t automatic. Beneficiaries need to submit a claim with a death certificate and other required documents before the insurer releases any funds.
3. Claims Can Be Denied
   Insurance companies sometimes deny claims, often citing issues like policy lapse (missed payments), material misrepresentation (incorrect information on the application), or exclusions (like certain risky activities). Or they will just deny without valid reason.
4. Delays Are Common
   Even valid claims can be delayed while the insurer investigates. This may happen if the death occurs within the policy’s contestability period (usually the first two years) or if the cause of death raises questions. Often though the “investigation” is nonsense and they are hoping that you will just give up. Don’t let them frustrate you.
5. Accidental Death Policies Have Narrow Coverage
   If the policy is for accidental death and dismemberment (AD&D), the insurer will only pay if the death meets the policy’s definition of “accidental.” Many claims fail because the death wasn’t truly accidental. Examples include drug overdoses and murders.
6. Wrongful Denials Happen
   Sometimes insurance companies deny claims without a valid reason, betting that the beneficiary won’t fight back. This is where legal help can make a huge difference.
7. An Attorney Can Challenge a Denial
   A lawyer can review the policy, gather evidence, and negotiate with the insurer. If needed, they can file a lawsuit to force payment. Usually a lawsuit is quickly filed and when there is no valid defense a payout happens. It’s not uncommon for these claims to resolve within a few months once you get a qualified attorney on your case.
8. Life Insurance Disputes Have Time Limits
   Illinois law sets strict deadlines appealing denials or filing lawsuits. Missing these deadlines can end your case before it starts. An experienced attorney will make sure that this does not happen.
9. Lawyers Only Get Paid If You Win
   The attorneys we recommend work on a contingency basis which means they only get paid if the policy gets paid out.
10. A Free Case Review Can Tell You What Will Likely Happen
    While no case is guaranteed to win, once your policy is reviewed this is an area of law where a lawyer can likely predict the outcome of the case.

It is gross that an insurance company would wrongly deny a life insurance policy, especially when often those policies are needed to pay for a funeral or living expenses. We are very aggressive in trying to get these claims resolved. Please contact us any time for a free case review..