When Life Insurance Companies Get It Wrong: A Recent Success Story

Some cases remind me why I do this work. A recent claim involved a grieving widow who should have received life insurance benefits without a fight. Instead, her claim was denied, leaving her in financial uncertainty at the worst possible time.

The life insurance company cited a misrepresentation in the policy application, claiming it justified voiding the policy. But under Texas law, a mistake on an application isn’t enough to deny coverage. To avoid paying a claim, the insurer must prove the applicant intended to deceive them when filling out the application. That’s a high bar—and for good reason. People don’t always recall every detail of their medical history, and they don’t always understand medical terms. And often the medical records cited by the life insurance company don’t even support a misrepresentation claim.

After reviewing the facts, it was clear the insurer had overreached. The insured had disclosed his medical condition adequately and appropriately. I challenged the denial, argued the law, and after some back and forth, the company reversed its decision and paid the full policy benefits. We were fully prepared to go to court, but fortunately it was not necessary.

Denied Life Insurance Claims in Texas: What You Need to Know

Alleged misrepresentations on the application
Policy lapses due to non-payment (even when payments were made)
Disputes over beneficiary designations
Accusations of fraud with little to no supporting evidence

If your claim has been denied or delayed, we can help. Contact us today for a case review and find out what options are available to you. J. Michael Young (800) 323-1857.