How Beneficiaries Can Fight Life Insurance Denials
When a loved one passes away, the last thing families expect is a life insurance denial. Yet every year, thousands of Alberta beneficiaries receive letters stating their claim "does not apply" — often based on technicalities that can be challenged.
Every year, Alberta families face life insurance denials. Insurers often cite "misrepresentation," "policy lapse," or "exclusion" to protect their bottom line. But beneficiaries have rights — and denials can be overturned.
As Alberta insurance lawyers who once defended insurance companies, we know exactly how insurers handle these claims. We use that insider knowledge to challenge denials, force disclosure, and recover full benefits for families.
This guide explains why life insurance claims are denied, what steps beneficiaries should take immediately, and how to fight back — effectively and legally.
This guide covers:
What Is a Life Insurance Claim?
A life insurance claim is a request made by a **beneficiary** — typically a spouse, child, or estate — for payment of the **death benefit** after the insured person passes away. Alberta families may have one or more types of coverage.
Types of Life Insurance Coverage:
Common Insurance Challenges in Alberta
Life-insurance denials almost always follow predictable patterns. Insurers may allege that:
Application Misrepresentation
The insured **misrepresented their health** on the application.
Policy Lapse
The policy **lapsed** for non-payment.
Contestability Period
Death occurred **within the two-year contestability period**.
Suicide or Hazardous Activity Exclusion
A **suicide clause** or **hazardous activity exclusion** applies.
Cause of Death Not Covered
The cause of death was **not covered** (e.g., illness vs. accident).
Beneficiary Dispute
There's a **dispute over beneficiaries**.
While these reasons sound serious, many are **legally and medically weak** when tested under Alberta law.
Step-by-Step: How Beneficiaries Can Fight a Life-Insurance Denial
Following these steps immediately after a denial can protect your rights and strengthen your case:
Request the Denial Letter in Writing
Insurers must provide written reasons for denial, citing the exact policy clauses and evidence used.
Obtain the Full Policy and Application
You're entitled to the full policy contract, not just the summary booklet. Review wording carefully for exclusions, time limits, and obligations.
Request the Claim File
Ask for all internal correspondence, investigation notes, and medical reports the insurer relied on. This is essential for identifying inconsistencies.
Gather Supporting Evidence
Medical records, coroner's reports, toxicology results, and proof of premium payments can all contradict the insurer's findings.
Contact an Alberta Insurance Lawyer
An experienced lawyer can review the policy, identify weak points in the insurer's reasoning, and compel payment or settlement through negotiation or litigation.
How Lawyers Build a Strong Case
A strong legal challenge requires both **strategic evidence gathering** and **precise policy interpretation.**
Obtain Complete Claim Files
Obtain the insurer's complete claim file and underwriting records.
Work with Medical Experts
Work with medical experts to analyze cause of death.
Identify Inconsistencies
Identify inconsistencies in insurer reasoning or internal communications.
Negotiate or Litigate
Negotiate with insurers or file legal action under the *Insurance Act*.
Quantify Damages
Quantify interest, damages, and legal costs to maximize recovery.
Frequently Asked Questions
Conclusion
Life-insurance denials aren't the end — they're the start of a fight you can win. Insurers count on beneficiaries giving up, but Alberta law strongly protects your right to fair payment.
You're entitled to full disclosure of the insurer's evidence.
Honest mistakes don't void coverage.
Bad-faith conduct can increase your compensation.
With the right legal strategy, most denials are overturned.
Was your life-insurance claim denied?
Call or text us today for a free consultation. No fee unless we win.