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


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