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


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