How to Handle Life Insurance Claim Denials in Texas

The concept of life insurance is already a blur to most people who don’t want to think about their own mortality. Nonetheless, if you raise a family and care about their future, it’s crucial to set up a policy that pays your loved ones after you’re gone. Even so, what if your life insurance claim is denied?

Here’s a look at how to handle claim denials for life insurance in Texas.

What should you do if your life insurance claim has been denied?

Why do life insurance claims get denied in the first place? Usually, one of the following reasons is given by the insurer to justify a claim denial:

  • The policyholder misrepresented the facts about their lifestyle on the application. For instance, they claimed on their application to be non-smokers, whereas they turned out to be chain smokers.
  • The application contains a half-truth about the policyholder’s employment or income history.
  • The insured engages in high-risk activities such as skydiving but didn’t disclose it on the application.

The first step to take is to call your insurance carrier to discuss the matter. Be prepared to give the name of the agent who sold the policy. If you can’t get anywhere with customer service, ask for a supervisor. Then request a more detailed written explanation for the denial. The next step is to file an appeal with the understanding that less than 1 percent of appeal cases are successful. However, hiring an experienced attorney will help your efforts.

How do Texas insurance laws protect you?

Your life insurance in Texas must comply with state law. Here are ways in which the state protects you as a life insurance policyholder:

  • Grace period – Texans are allowed to cancel their life insurance policies after a state “free look” period of 7 to 30 days after enrolling. During this grace period, the insurer cannot cancel the policy or deny coverage.
  • Timely claim payment – An insurer must settle the claim in a timely manner after it’s filed. Texas requires the provider to begin the settlement process within 15 days after receiving proof of death.
  • Protection against insurer bankruptcy – Even if your insurance company goes bankrupt, Texas still guarantees coverage benefits.


Don’t allow yourself to panic over the misfortune of a life insurance claim denial in Texas because it’s still possible to get a settlement from your insurer. You just have to be willing to challenge the system and stick with the facts. Contact us at J. Archer Insurance Group for more information on how the right life insurance policy can work for you and your family.

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