When a loved one dies, you face many struggles. You will have to deal with the emotions around losing someone you loved. You will have to plan and pay for a funeral and burial costs. But one struggle you don’t want to have is fighting a life insurance company.

Unfortunately, life insurance companies can deny claims for death benefits. A denial can leave you without the needed benefits while you struggle to pay for funeral costs. Here are a few reasons insurance companies will deny a life insurance claim:

  • Contestability period – Insurers have a contestability period for two years after the policy starts. During this period, they can easily deny claims if they think there is evidence of fraud.
  • Premium not paid – If your loved one fell behind on paying for life insurance, the insurance company will not pay out benefits. However, you may be able to contest this depending on the policy and how long the premium did not get paid.
  • Problems with paperwork – When you file a claim to receive benefits, you must follow specific guidelines. You will have to provide the insurance company with a death certificate. And you may have to fill out paperwork or provide hospital records. Any problems with this can lead to a denial.
  • Policy exclusions – While this may not apply to newer life insurance policies, some insurance companies may exclude some types of death. The most common type of exclusion is suicide. But older policies may also deny benefits for deaths caused by living dangerously. Deaths from drugs, alcohol, sky diving or scuba diving may cause a denial.

You may need the benefits of life insurance

You can have many costs after your loved one passes away. You will have to pay for funeral expenses right away. And if you relied on your loved one’s income, the life insurance benefits may ensure you have money to live.

If the insurance company denies your claim, you should be able to appeal the decision. You may want to seek legal counsel to make sure you file your appeal correctly.

An appeal can make sure you receive much-needed life insurance benefits.