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


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