Why Life Insurance Claims Get Denied in Alberta
Life insurance is meant to provide security — peace of mind that your family will be protected financially after you're gone. But for many Alberta families, that promise breaks down when the insurer denies payment.
Life insurance denials are more common than most people realize. Even after decades of paying premiums, insurers often find technicalities or exclusions to justify non-payment. When that happens, the loss becomes both emotional and financial.
As Alberta insurance lawyers who once defended insurers, we know exactly how and why life insurance claims get denied — and how families can fight back.
This article explains the most common reasons life insurance claims are denied in Alberta, how insurers justify those denials, and what steps to take to challenge them.
Why Legal Action Is Often Necessary
Insurers rarely reverse denials without legal pressure. A formal claim under Alberta's *Insurance Act* compels them to disclose internal decision-making and justify their conduct.
Most cases settle before trial, resulting in:
When a Life Insurance Denial Is in Bad Faith
Insurers have a legal duty to act fairly and handle claims promptly. When they don't, they may be acting in **bad faith**.
What to Do If Your Life Insurance Claim Is Denied
If your claim is denied, take these steps immediately:
Request the Denial Letter in Writing
Insurers must specify the exact reason for denial and cite the policy clause they rely on.
Obtain the Full Policy and Application
Review all forms, medical questionnaires, and correspondence for inconsistencies or missing disclosures.
Request the Claim File
Ask for all internal notes, medical reports, and investigator correspondence — you have a right to review how the insurer made its decision.
Gather Medical and Financial Records
Doctors' notes, hospital records, and prescription histories can clarify cause of death and dispute misrepresentation claims.
Contact an Alberta Insurance Lawyer
We can analyze whether the denial is legitimate, negotiate directly with the insurer, or file a lawsuit for payment and damages.
How Lawyers Challenge Life Insurance Denials
A skilled Alberta insurance lawyer focuses on both **policy interpretation** and **evidence**.
Review Policy Wording
Identify ambiguities or misapplied clauses.
Obtain Expert Opinions
Medical or forensic evidence to clarify cause of death.
Challenge Insurer Assumptions
Especially around pre-existing conditions or misrepresentation.
Negotiate Settlements
Many claims are paid once insurers realize legal action is likely.
Litigate if Necessary
File suit under Alberta's *Insurance Act* to recover benefits and potential bad-faith damages.
Frequently Asked Questions
Conclusion
Life insurance should provide certainty — not conflict — for grieving families. When insurers deny payment, it often stems from overreach, technicalities, or bad faith.
Not every omission or delay voids coverage
Insurers must prove misrepresentation, not just allege it
Alberta law protects beneficiaries from unreasonable denials
With proper legal help, most denials can be overturned or settled