Life Insurance Claim Denial Statistics: What To Know in 2024

A life insurance claim denial can leave you without the payout you need to recover from the loss of a loved one. By understanding the reasons why life insurance claims are denied, you can take action to overturn your denial and get the death benefits payout to which you’re entitled.

In this article, we’ll explore key life insurance claim denial statistics, discussing the prevalence of denials, common reasons behind claims denied, and how denial rates vary by insurer. With these insights, you can uncover the reason why your claim was denied and pursue legal action to get your death benefits paid out as soon as possible.

If your life insurance claim has been wrongfully denied, Boonswang Law can help. Contact us today and let our skilled life insurance lawyers fight to overturn your denial and get you paid.

What Percentage of Claims are Denied?

Between 10% and 20% of life insurance claims are denied by insurance companies. Most life insurance policies deny claims due to incomplete information or material misrepresentation in applications. An experienced life insurance lawyer can help you uncover the specific reasons behind your life insurance claim denial and secure your rightful death benefit payout.

How Do Consumers Choose Life Insurance Plans?

About 34% of consumers select life insurance plans based on price and convenience, highlighting the importance of affordable premiums and user-friendly systems offered by life insurance companies. 

How Many Life Insurance Claims Are Denied On Average?

Almost 1 in 5, or 20%, of life insurance claims are denied by insurance companies, often due to material misrepresentation or incomplete medical history in the life insurance application. This high denial rate emphasizes the importance of working with a skilled life insurance lawyer to get the payout you deserve.

How Many People Fight Claim Denials?

Fewer than 0.2% of life insurance claim denials are contested by policyholders. This shocking statistic highlights the importance of working with a skilled life insurance lawyer, as many policyholders facing denials don’t know how to contest their claims.

What Percentage of Americans Have Life Insurance?

52% of Americans hold life insurance policies, but many beneficiaries may find themselves without their expected death benefit payout after a claim denial. If your life insurance claim has been denied, consult with a life insurance lawyer to secure the benefits you deserve.

Do Denial Rates Vary by Insurer?

Yes, denial rates vary among life insurance providers, and some insurance companies deny up to 50% of life insurance claims submitted. For those seeking life insurance policies, this highlights the importance of researching life insurance plans in the insurance industry to choose a trustworthy company to hold your policy.

What is the Most Common Type of Life Insurance?

Whole life policies are the most common type of life insurance policy, offering a death benefit and a cash value component that grows over time. If your claim has been denied, a life insurance lawyer can negotiate with your insurance company to contest the denial and secure a full benefit payout.

Do Denial Appeals Often Overturn Life Insurance Claim Denials?

Approximately 40% of denied life insurance claims are successfully overturned when beneficiaries appeal the claim denial. For those with a life insurance claim denied, this high overturn rate highlights the importance of working with a skilled life insurance lawyer to fight for the payout you’re entitled to. 

How Much Do Life Insurance Premiums Cost?

In 2020, insurance companies wrote $767 billion in premiums for life insurance policies. This reflects the significant investment Americans are willing to make to secure death benefit payouts for their beneficiaries.

If Your Life Insurance Claim Was Wrongfully Denied, Contact Boonswang Law Today 

If your life insurance claim has been wrongfully denied, Boonswang Law will fight for your rights to get you paid as soon as possible. Our experienced life insurance lawyers will negotiate with insurance companies and correct misinformation on your policy to get your denial overturned.

Contact Boonswang Law today and let our experienced life insurance lawyers fight for the life insurance benefits you’re entitled to.

Sources

ACLI. “Life Insurers Fact Book.” November 7, 2023. https://www.acli.com/about-the-industry/life-insurers-fact-book

Insurance Information Institute. “Facts + Statistics: Life insurance.” 2023. https://www.iii.org/fact-statistic/facts-statistics-life-insurance 

Karen Pollitz. “Claims Denials and Appeals in ACA Marketplace Plans in 2021.” KFF. February 9, 2023. https://www.kff.org/private-insurance/issue-brief/claims-denials-and-appeals-in-aca-marketplace-plans/

Susan Meyer. “Life Insurance Statistics.” The Zebra. October 14, 2024. https://www.thezebra.com/resources/research/life-insurance-statistics/ 

Robin Field. “How Often Do Health Insurers Say No to Patients? No One Knows.” ProPublica. June 28, 2023. https://www.propublica.org/article/how-often-do-health-insurers-deny-patients-claims 
Saad Imran. “Top Life Insurance Statistics for 2024.” MarketWatch Guides. September 11, 2024. https://www.marketwatch.com/guides/life-insurance/life-insurance-statistics/

Chad G. Boonswang, Esquire is a litigation lawyer based in Philadelphia, PA. Selected as an ASLA 2014, 2015, 2016, 2017 and 2018 Top 100 Litigation Lawyer, Mr. Boonswang plays to win. As a lawyer, athlete, and scholar, he has always put in the energy, time, and commitment to be the best. After working for several prominent law firms in Philadelphia, including Montgomery McCracken Walker & Rhoads LLP, he founded his own practice in 2002.  Since then Chad has recovered tens of millions of dollars on behalf of his clients from life insurance claims and catastrophic injury cases.  Year after year, he has earned a 10.00 Superb rating on Avvo.

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