Avoiding Life Insurance Loopholes

Web Admin - Tuesday, November 25, 2014

life insurance loopholes, Illinois life insurance lawyerThe insurance industry is known for having incredibly complex contracts, and life insurance is no exception to this rule. As you might expect, the reason for this is money. According to statistics from the Insurance Information Institute, life insurance is a multi-billion dollar industry, and the companies want to keep it that way. 

One of the ways that life insurance companies do this is by fighting against paying valid claims. Money they do not have to pay out is money that they can ultimately keep for themselves, and even just delaying the payments can be profitable for them. Life insurance companies have two main tools for insurance claim disputes, policy cancellations and policy exclusions.

Policy Cancellation

A policy cancellation is exactly what it sounds like. The insurance company cancels a claimant's policy in order to avoid paying out a claim. This is a particular problem during the first two years of the policy's life, which is known as the contestability period. During this period, the insurance company may examine the policy looking for misrepresentations or omissions, and then cancel the policy if they find any. They even have the option of doing this after a person has already made a claim, and they are allowed to cancel regardless of whether the omitted information has anything to do with the actual cause of death.

A similar issue, but one that can last beyond the contestability period, is the material misrepresentation clause. This clause allows the insurer to cancel the policy at any time if they discover a lie or omission that would have caused them to not issue the policy in the first place. However, even people with perfectly accurate applications are not safe from having their claims contested.


In cases where the person's application cannot be contested, insurance companies may still attempt to avoid paying out for claims based on policy exclusions. These exclusions are specific events or actions that the insurance company has excepted from the policy. There are a variety of different policy exclusions that insurers may use, and they vary from policy to policy, but they may include:

- Dangerous activities like skydiving;
- Suicide;
- Alcohol and drug use; and
- Illegal activities.

The exact limits of these exclusions can depend on the precise policy language. For instance, some policies’ exclusions for alcohol and drug use exclude only illegal substances, while others exclude legal ones too. This can be especially complicated because some policies require the substance to be the cause of the death, while others only need the substance to be in the person's system at the time of death.

Life insurance contracts are complicated legal documents, and the insurance company is going to have a lawyer on their side. If you want to even the odds, contact a Palatine life insurance attorney today. Our firm assists people in insurance disputes all over the northwest suburbs, including in towns like Inverness, Deer Park, Barrington, Arlington Heights, Schaumburg, Des Plaines, Rolling Meadows, Crystal Lake, and Buffalo Grove.

Ken ApicellaAbout the Author: Attorney Ken Apicella is a founding partner of DGAA focusing in the areas of personal injury, employment, insurance coverage disputes, and civil litigation. Ken earned his J.D. from DePaul University College of Law in 1999. He has been named a SuperLawyers Rising Star and a Forty Illinois Attorneys Under Forty to Watch. Ken has written and lectured for the Illinois Institute for Continuing Legal Education and regularly serves as a moderator at Northwest Suburban Bar Association's Continuing Legal Education seminars.

Recent Posts


DGAA Retaliatory Discharge employment law Crystal Lake business law attorneys meal breaks medication errors driving Illinois jet ski accident lawyer BUI Arlington Heights estate planning attorney Illinois Probate Act of 1975 estate tax dynasty trusts fiduciary rule Illinois attorney insurance agent negligence guardianship attorney in terrorem provision marijuana Mt Prospect Attorney Legal Info drunk driving Deer Park accident attorney Illinois workers compensation attorney Rolling Meadows employment law attorneys Buffalo Grove personal injury attorney living trust Schaumburg real estate lawyer Barrington estate planning attorney Long Grove real estate attorney drugs Arlington Heights TBI attorney Illinois construction accident attorney Schaumburg wrongful death attorney license Palatine construction attorney wage theft PTSD boating DUI medical malpractice claims digital assets digital evidence murder defense Arlington Heights wills and trusts lawyers insurance claim denials Schaumburg insurance lawyers Rolling Meadows litigation lawyer first degree murder Illinois Transfer on Death Instrument traumatic brain injury Deer Park workers compensation lawyer Crystal Lake medical malpractice attorneys IRA benefits Chicago employment attorney Des Plaines tax law firm estate planning lawyer Deer Park criminal attorney Arlington Heights injury attorney Schaumburg personal injury attorney Deer Park personal injury lawyer probate process corporate law forming a corporation in Illinois unpaid overtime Chicago estate planning Illinois wills and trusts Chicago will attorney pedestrian injuries, pedestrian fatality insurance claim dispute attorney Des Plaines personal injury attorney comparative negligence Arlington Heights employment attorney new real estate form Illinois Chicago will attorney, social media platforms, Illinois estate planning lawyer, senior citizens Arlington Heights criminal lawyer Rolling Meadows estate planning attorney IRELA trauma after an accident insurance denial appeals hit and run accident Palatine civil litigation lawyer Palatine drug lawyer Illinois Trust Code DNR federal regulations for LLCs product liability head on collisions dealing with problem employees Arlington Heights personal injury lawyer power of attorney minimum wage Illinois elder law attorney Palatine punch death probate Illinois insurance claim dispute lawyer pregnant women Buffalo Grove personal injury lawyer golf accidents employee discrimination insurance adjusters Illinois real estate Barrington personal injury attorney Rolling Meadows criminal attorney Buffalo Grove insurance claim dispute lawyers Detainer Actions employment contract, employment law, employment at-will, Deer Park employment law attorneys, contract, revenge porn Kenilworth estate planning attorney underfunded trust criminal involuntary manslaughter Illinois estate planning Illinois employment law attorney Mount Prospect elder law attorney drug possession pain and suffering Chicago corporate attorney workers compensation cell phone tower data Illinois business lawyer Crystal Lake employment attorney Illinois employment law firm estate attorney appealing an insurance claim real estate lawyer Buffalo Grove car accident lawyer Illinois small business Kenilworth estate planning lawyer denied insurance claims probate claims DUI penalities expungement Des Plaines drug lawyer wrongful termination, employment law, whistleblower protections, Illinois employment laws, discrimination in the workplace fiduciary rule delay severance agreements Barrington criminal defense lawyer real estate attorney healthcare criminal defense criminal record license revocation Illinois home inspection Schaumburg construction accident lawyer trench injuries Palatine traffic accidents South Barrington real estate attorney Illinois personal injury lawyers condo association Palatine probate lawyer distracted driving accidents cell phone accidents Des Plaines injury law firm comp time Crystal Lake criminal defense attorney insurance dispute, insurance dispute lawyers, insurance claim denial, insurance claim delays, Rolling Meadows insurance dispute attorneys spinal cord injury controlled substance Crystal Lake personal injury attorney Barrington estate planning lawyer power of attorney for healthcare liability privacy pet bites problem employees Inverness civil lawyer real estate Rolling Meadows Attorney Arlington Heights wills and trusts attorneys Chicago traffic lawyer paid sick leave Des Plaines Rolling Meadows insurance attorney Des Plaines claims law firm Rolling Meadows personal injury lawyers Schaumburg Long Grove estate planning attorney Des Plaines personal injury lawyer Arlington Heights personal injury attorney Illinois registered agent Rolling Meadows Traffic Lawyer rollover accidents Palatine injury attorney distracted driving accident victims Des Plaines personal injury lawyers Buffalo Grove criminal defense lawyer Food and Drug Administration's Food Safety Modernization Act drug crime insurance claim estate plan insurance disputes Illinois collections attorney Rolling Meadows probate lawyer rollover car crashes Illinois insurance dispute lawyers jet ski accidents Schaumburg estate attorney Illinois driving without license Palatine corporate law attorneys Inverness estate planning lawyer gift tax exemption, estate planning, estate planning strategies, Illinois estate planning, South Barrington estate planning attorneys child safety bad faith insurance claims Illinois DUI attorney Buffalo Grove injury lawyer Palatine business attorney Illinois estate planning law firm Arlington Heights employment law attorneys traffic violations defense Deer Park employment law attorney boating accidents defective products preventable medical errors Arlington Heights lawyer Palatine employment attorney underinsured motorist sole proprietorship Des Plaines real estate lawyer Rolling Meadows car accident lawyers attorney fees construction contracts ken apicella Transfer on Death Instrument insurance disputes, Illinois insurance disputes, Illinois insurance dispute attorneys, denied insurance claims, Arlington Heights insurance dispute attorneys brain injury Buffalo Grove corporate attorney Barrington Traffic Lawyer startup company loss of consortium Rolling Meadows personal injury attorney Rolling Meadows drug defense attorney Crystal Lake employment lawyer Illinois personal injury vacation home bike accident Crystal Lake medical malpractice lawyer Crystal Lake car accident attorney natural gas trust payments icy parking lots Barrington attorney Arlington Heights insurance attorney advance healthcare directive Illinois medical malpractice case workplace sexual harassment Illinois speeding lawyer underage DUI Illinois employee rights attorney. contracts Des Plaines real estate attorney job lawyers pay when paid contract Arlington Heights Attorney Inverness DUI lawyer no contest clauses manufacturing Crystal Lake traffic lawyer Buffalo Grove real estate attorney workers compensation benefits suspended license wills and trusts Buffalo Grove medical malpractice lawyers traffic tickets insurance claim denial Schaumburg Attorney Rolling Meadows employment law attorney Rolling Meadows tax attorney commercial leasing traffic laws Palatine criminal defense lawyer Palatine estate planning lawyer digital media accounts, estate planning, Arlington Heights estate planning attorney, Illinois wrongful termination lawyer Rolling Meadows traffic law firm Arlington Heights wills and trusts attorney overtime pay auto accidents compensatory time nursing home negligence Schaumburg criminal attorney Fourth of July DUI estate planning Inverness real estate attorney Illinois boating accident lawyer civil rights violation Chicago employment lawyer commercial real estate medical marijuana boating under the influence denial of life insurance anesthesia errors murder charges employment law, Illinois employment laws pizza emoji irrevocable trust field sobriety test car collision disability benefits Illinois traffic attorneys spinal cord injuries traffic accidents owner responsibility texting and driving Crystal Lake car accident lawyer Illinois employment law attorneys Illinois tax attorney Palatine workers compensation lawyer Illinois workplace discrimination attorney Super Mario Arlington Heights real estate lawyer Arlington Heights car crash attorneys insurance dispute Chicago biking tips Palatine insurance lawyer car crash injuries liability claims Buffalo Grove employment lawyer truck collisions employee misclassification Barrington real estate lawyer Rolling Meadows marijuana attorney work unions Illinois pet lawyer Barrington personal injury lawyer Joliet general practice lawyers Illinois mortgages Buffalo Grove traffic lawyers Colin Gilbert holiday statistics DUI attorney personal injury lawyer life insurance Illinois job attorney probate lawyer taxes Inverness corporate attorney Deer Park traffic accident attorney Illinois personal injury lawyer Arlington Heights Traffic Lawyer Exclusions Illinois insurance claim attorney Palatine real estate lawyer landlord tenant law Palatine elder law attorney criminal law Illinois employment attorneys drunk driving statistics Arlington Heights tax lawyer car crash Illinois criminal defense attorney Long Grove estate planning Rolling Meadows employment attorney Crystal Lake insurance lawyer agent Barrington criminal lawyer Barrington employment law attorney mortgage Des Plaines accident attorney Illinois insurance disputes construction accidents residential real estate Rolling Meadows insurance lawyer motorcycle accident lawyer Illinois will lawyer Illinois trusts attorney foreclosure Schaumburg employment law attorneys Long Grove real estate lawyer Illinois real estate lawyer Illinois civil litigation lawyer Crystal Lake bike accident lawyer Illinois defective products attorney Des Plaines drug crimes lawyer Crystal Lake estate planning lawyer Crystal Lake personal injury lawyer Crystal Lake injury attorney Mount Prospect wills and trusts lawyers Federal Food Drug and Cosmetic Act Mount Prospect real estate lawyer personal injury personal injury claims llinois Real Estate Lawyers Association swimming pools internet vacation home fines Palatine traffic lawyer caregiver Illinois insurance claim dispute lawyers probate claims process Buffalo Grove traffic attorney home inspection lawyer rent to own real estate contracts Inverness injury lawyer ACA Illinois Wage Payment and Collection Act Kenilworth estate planning attorneys Illinois employment laws drug crimes lawyer digital assets, digital fiduciary, estate planning, digital content, Long Grove estate planning lawyers modern family estate planning real estate attorneys BAIID Landlord Tenant Ordinance living trust benefits Barrington business law firm TBI Schaumburg corporate attorney IRA trust transfer Barrington medical malpractice lawyers premises liability foreclosed rental property drug crimes GM ignition switches Illinois insurance attorney traumatic brain injuries right to work Illinois estate planning attorney Employment Discrimination Law Palatine employment law lawyer Illinois workers compensation lawyer slip and fall accidents Crystal Lake law firm Palatine trusts lawyer Liquor Control Act elder law small business living wills Jay Andrew Des Plaines criminal attorney estate planning, digital assets, Revised Uniform Fiduciary Access to Digital Assets Act, Illinois digital assets, Illinois estate planning, Barrington Illinois estate planning lawyer employment lawyer coronavirus Illinois medical malpractice attorney Rolling Meadows DUI lawyer Arlington Heights accident attorney construction accidents, personal injury, wrongful death, Arlington Heights personal injury attorneys, workers' compensation Inverness real estate lawyer Illinois corporate lawyer medical malpractice compensation Des Plaines Traffic Lawyer traffic crimes Illinois workplace lawyer preventing accidents Rolling Meadows personal injury lawyer employment law, meal breaks, rest breaks, hotel employees, Des Plaines employment law attorneys Illinois employment law sexual images Crystal Lake accident attorney crossover accidents Deer Park motorcycle accident lawyer IRS Crystal Lake civil litigation lawyer dog bites Inverness traffic law firm Illinois wills and trusts attorneys personal injury claim capital gains tax Illinois injury lawyer estate planning for college students rumble strips Rolling Meadows insurance dispute lawyers, insurance dispute eluding a police officer texting while driving workers comp wills Crystal Lake traffic attorney real estate contract elder abuse bicycle dooring accidents fatal car accidents Rolling Meadows medical malpractice lawyers financial advisors medical malpractice, missed diagnosis, delayed diagnosis, medical mistake, Deer Creek medical malpractice lawyers blended families car crashes dram shop law Schaumburg civil litigation attorney consent to a search healthcare claims CAM insurance claim dispute pedestrian-automobile accident Schaumburg elder law lawyer social media after death Palatine Attorney Inverness personal injury attorney automated cars Schaumburg injury lawyer Illinois traffic ticket lawyer investment property employees employment attorney POA Crystal Lake pet attorney Schaumburg car accident attorney surgical mistakes loopholes independent contractor estate planning attorney Barrington workers compensation attorney Fair Labor Standards Act Arlington Heights medical malpractice lawyer Illinois medical malpractice lawyers sexual harassment Arlington Heights wills and trusts lawyer Illinois Workers’ Compensation Commission institutional trustee caretaker rights unfunded trust Illinois probate lawyer car accident lawyers jet ski Rolling Meadows real estate attorney real estate closing South Barrington real estate lawyer Rolling Meadows traffic attorney defective products lawyer installment contracts low-ball insurance settlement Illinois motorcycle accident lawyer insurance claims Inverness accident lawyer insurance negligence condo Illinois living will Whistleblower Claims Illinois pedestrian accident attorney food poisoning deadly crashes Inverness probate lawyer car accident lawyer subcontractor Buffalo Grove probate lawyer Illinois Sales Representative Act Rolling Meadows business lawyer insurance agents Crystal Lake will lawyer Schaumburg drug defense lawyer Crystal Lake tax lawyer FSLA Des Plaines collections attorney Self-Directed IRA Accounts traffic violations Thanksgiving medical malpractice Palatine civil attorney privacy laws marijuana crimes attorney Chicago car accident lawyer Barrington boating accident attorney hands free device mass shooting life insurance policy BAC overtime violations Inverness insurance attorney trucking accidents products liability life insurance lawyer DUI defense Chicago attorney Rolling Meadows criminal lawyer bicycle accidents blood alcohol content Crystal Lake pedestrian accident lawyer pedestrian accident college kids car accidents Schaumburg traffic lawyer Illinois car accident attorney digital information DMV personal injury law firm Barrington litigation attorney Chicago trucking accident attorney Schaumburg probate attorney motorcycle accident Schaumburg employment attorney Deer Park traffic lawyer commercial leases Illinois LLC creation Illinois law Rolling Meadows accident lawyer breach of contract Illinois trucking safety Schaumburg estate planning attorney landlord Illinois insurance lawyer Home Remodeling Repair Act Forcible Entry Illinois employment lawyer back injuries insurance dispute attorney insurance attorney Rolling Meadows corporate lawyer trucking accident lawyers denied insurance claim insurance claim delay Riverwoods estate planning lawyer Illinois bicycle safety ObamaCare breathalyzer test wrongful death LLCs Schaumburg criminal law attorney Palatine corporate attorney uninsured motorist employee rights personal injury accidents Do Not Resuscitate Barrington employment law firm license reinstatement Schaumburg estate planning lawyer trusts gift taxes Illinois traffic laws whistleblower protections estate planning trusts Colin H. Gilbert Long Grove estate planning attorneys changes to mortgage law Illinois personal injury attorney Family Medical Leave Act clemency Barrington civil litigation attorney federal crimes Long Grove wills and trusts attorneys Class A misdemeanor Deer Park DUI lawyer insurance denials Barrington drug crime attorney Des Plaines pet law attorney life insurance claims tax attorney Crystal Lake medical malpractice law firm Des Plaines insurance attorney civil litigation attorney reckless homicide fault based insurance business litigation Attorney Ken Apicella Arlington Heights traffic attorney special needs trust accidental death benefits health insurance dispute Illinois Human Rights Act traffic deaths slip and fall Illinois lawyer wrongful termination real estate leasing civil litigation Des Plaines motorcycle accident attorney Crystal lake insurance dispute attorney FMLA Illinois rollover accident lawyers Schaumburg medical malpractice lawyer Chicago estate planning lawyer unauthorized overtime Palatine employment lawyer Affordable Care Act Buffalo Grove law firm estate planning, death tax, succession plans, business estate plans, Barrington estate planning lawyers cell phone Illinois traffic attorney Crystal Lake employment law attorney traffic offenses real estate zoning creditors pet law personal injury, auto accident injuries, delayed injuries, serious injuries, Des Plaines personal injury attorneys Rolling Meadows medical research deed transfer Arlington Heights trucking lawyer trustee School Visitation Rights Act Deer Park medical malpractice attorney personal injury attorney Palatine law firm income distribution deducation Illinois insurance claims lawyers Illinois Smoke Detector Act Home Sale Contingencies Palatine personal injury lawyer Illinois business law atorneys Arlington Heights car accident lawyer Rolling Meadows insurance dispute lawyers homestead rights Barrington injury attorney Schaumburg personal injury lawyer license suspension Rolling Meadows boating crash lawyer operating agreements murder Des Plaines DUI attorney filing a medical malpractice claim unpaid assessment probate fees pedestrian accidents Schaumburg personal injury lawyers hiring employees Illinois traffic accident lawyer living trust vs will Arlington Heights pedestrian accidents Policy Cancellation rest breaks natural gas explosion employment contract Chicago insurance claim attorneys Des Plaines medical malpractice attorney car accident Inverness elder law lawyer Chicago lawyer liens Illinois medical malpractice claim speeding Deer Park real estate law firm Chicago insurance law firm Illinois red light cameras Barrington employment attorney Des Plaines civil attorney