Chicago Life Insurance Lawyer

Should You Hire a Life Insurance Attorney

Hiring a Chicago life insurance lawyer can make a significant difference when dealing with a denied or delayed life insurance claim. Life insurance companies often rely on complex policy language, exclusions, or alleged misrepresentations to avoid paying rightful benefits. 

An experienced lawyer can review the life insurance contract, challenge wrongful denials, and handle communications with the insurer, giving grieving families the support they need to recover the full benefits they’re entitled to under Illinois law.

Verdicts and Settlements from Our Life Insurance Lawyers in Chicago

At Rosenfeld Injury Lawyers, we’ve secured meaningful compensation for clients through various insurance policies:

• $1,100,000 from a daycare facility’s liability insurance after a two-year-old suffered a fractured pelvis falling from an unattended changing table.
• $712,250 from a homeowner’s insurance policy for a six-year-old who fell from an unsafe backyard treehouse.
• $400,000 from a general contractor’s liability insurance after a masonry worker fell from scaffolding and fractured his leg. Workers’ compensation covered his medical bills and lost wages.

Common Reasons Insurers Deny Claims in Illinois

Life insurance claim denials in Illinois often stem from various reasons insurers use to avoid paying benefits. One common cause is alleged misrepresentation on the application, such as undisclosed health conditions, smoking status, or incorrect medical history. These are frequently cited during the contestability period, typically the first two years after the policy is issued. 

Another basis is a policy lapse due to non-payment of premiums. Insurers may argue the policy is inactive if payments are missed and the grace period expires. Policy exclusions can also trigger denials—suicide within two years, deaths during criminal acts, or while engaging in risky activities may fall under these exclusions. 

Life insurance disputes over beneficiary designation can arise when designations are outdated or unclear, leading to interpleader actions. Lastly, eligibility disputes in group policies may occur if the deceased didn’t meet employment or coverage criteria when the death occurred.

The Two-Year Contestability Period Explained

The two-year contestability period refers to the initial two years after a life insurance policy takes effect. If the insured person dies during this window, the insurance company can review the application for errors or false statements. Claims can be denied only if the misrepresentation was significant to coverage approval.

What to Do When Your Chicago Life Insurance Claim Is Denied

If your claim is denied, review the denial letter carefully to understand the insurer’s reason. Gather the complete policy, beneficiary designation forms, payment records, and all correspondence with the insurance company. Do not deposit refund checks, as doing so could waive your rights. Contact a Chicago life insurance attorney promptly to evaluate your case and explore your legal options for challenging the denial.

Necessary Documents and Information for a Life Insurance Claim Review

You’ll need several essential documents to properly evaluate a denied claim. These include the whole policy and original application, the official denial letter from the insurer, a certified copy of the death certificate, relevant medical records of the insured, a history of premium payments, and all correspondence with the insurance company. Having these materials ready allows a Chicago life insurance attorney to assess your claim and advise on the next steps.

The Insurer’s Duty of Good Faith and Fair Dealing

Under Illinois law, insurance companies have a legal duty of good faith and fair dealing when handling claims. This means insurers must investigate claims promptly, communicate clearly, and not unreasonably delay or deny benefits owed to beneficiaries.

What Constitutes Insurance Bad Faith Under Illinois Law?

Under Illinois law, insurance bad faith happens when an insurer denies or delays a valid claim without a reasonable justification. This can include ignoring evidence, misrepresenting policy terms, or failing to investigate properly. If proven, the insurer may face additional penalties under 215 ILCS 5/155, including attorney’s fees and statutory damages.

Appealing Claim Denials: The First Step

After a claim denial, the first step is usually filing an internal appeal with the insurance company. This involves submitting a written request for reconsideration along with documents that challenge the reason for denial, such as updated medical records, proof of premium payments, or clarification of beneficiary information.

ERISA Claims for Employer-Sponsored Life Insurance

Claims involving employer-sponsored group life insurance policies are often governed by the federal Employee Retirement Income Security Act (ERISA), which sets them apart from individual policy claims. 

Unlike individual claims, which are subject to Illinois state law, ERISA claims are controlled by federal law. This means state-specific legal remedies, such as bad faith claims or punitive damages, typically do not apply.

One of the most critical distinctions in ERISA-governed claims is the requirement to complete a mandatory administrative appeal before filing a lawsuit. If a claim is denied, the beneficiary must follow the insurer’s appeal process and submit all relevant documentation and arguments within strict deadlines, usually 60 or 180 days. Failing to exhaust this internal process can bar the claimant from pursuing the case in federal court.

Because of these procedural rules and limited remedies, ERISA claims require close attention and are best handled by an experienced life insurance attorney.

Filing a Lawsuit to Recover Benefits

If a life insurance appeal is denied—or if the policy in question is an individual policy where an internal appeal isn’t required—the next step may be to file a civil lawsuit against the insurance company. This legal action seeks to recover the full benefits owed under the life insurance policy and potential interest or damages. An experienced life insurance lawyer can prepare the case, present evidence, and advocate for the beneficiary in court.

State Court vs. Federal Court for Life Insurance Lawsuits

Where you file a life insurance lawsuit depends on the type of policy. If the dispute involves an individual life insurance policy, the case is typically filed in Illinois state court, often in Cook County. However, the lawsuit must be filed in federal court if the claim consists of a group life insurance policy governed by ERISA (usually provided through an employer). Understanding this distinction is critical when planning legal action against an insurance company.

What Compensation Can Be Recovered?

Beneficiaries pursuing a claim may be entitled to the full value of the life insurance policy’s death benefit. If the insurance company caused payment delays, interest may also be recoverable from the date the benefit was due. 

Illinois law may allow for additional damages beyond the policy limits in cases involving individual (non-ERISA) policies where the insurer acted in bad faith, such as unjustified denials or unreasonable delays. This can include attorneys’ fees and penalties under 215 ILCS 5/155. A qualified Chicago life insurance lawyer can help assess and pursue the full compensation you’re owed.

Protecting the Rights of Family Members and Beneficiaries

Legal action following a denied or delayed claim is about more than paperwork—it’s about protecting the rights of grieving family members and ensuring they receive the financial support promised by the life insurance policy. When an insurance company refuses to honor its obligations, it can place additional emotional and financial strain on beneficiaries already coping with loss. 

A dedicated Chicago life insurance lawyer can help enforce the terms of the policy, challenge improper denials, and hold insurers accountable so that family members and beneficiaries receive the compensation they’re rightfully owed under Illinois law.

How a Chicago Life Insurance Attorney Investigates Your Case

An attorney examines the denial letter, policy terms, application, and underwriting file. They also collect medical records, payment history, and correspondence to clearly understand why the claim was denied and how to challenge it effectively.

Challenging Denials Based on Alleged Misrepresentation

Attorneys counter these denials by proving the statement was not intentionally false, was immaterial, or would not have affected the insurer’s decision to issue the policy in the first place, especially after the contestability period has passed.

Addressing Denials Due to Policy Lapse or Exclusions

Lawyers review the premium payment timeline, grace period details, and any lapse notices. They also closely analyze exclusion language to determine if the denial is legally justified under the actual terms of the policy.

Resolving Disputes Over Beneficiary Designation

When multiple parties claim the same policy benefits, attorneys help resolve the dispute by reviewing the beneficiary records and representing their clients’ interests in interpleader actions or court proceedings.

Negotiating Settlements with the Insurance Company

Life insurance lawyers present legal arguments, case evidence, and supporting documents to the insurance company, pushing for a reversal of the denial and a full or negotiated claim payout without prolonged litigation.

Why You Need an Experienced Lawyer for Claim Denials

Life insurance companies often rely on complex policy language, technicalities, and strict deadlines to justify denying valid claims. When ERISA regulations apply or the denial involves alleged misrepresentation, navigating the process becomes even more challenging. 

An experienced Chicago attorney understands how insurers operate and knows how to counter these tactics. Legal representation levels the playing field, ensures deadlines are met, and improves the chances of recovering the entire life insurance benefits owed to your family.

Our Law Firm’s Experience with Chicago Life Insurance Cases

At Rosenfeld Injury Lawyers, we have a strong record of helping beneficiaries recover denied life insurance benefits across Chicago. Our team has successfully handled individual policy disputes and complex ERISA-governed claims involving employer-sponsored group life insurance. 

We understand insurance companies’ tactics to delay or deny claims and know how to challenge them effectively. With extensive experience in insurance litigation and appeals, we’re committed to securing the compensation our clients are rightfully owed.

Contact Our Chicago Life Insurance Lawyers for a Free Consultation

If your life insurance claim has been delayed or denied, you don’t have to face the insurance company alone. Contact a Chicago personal injury attorney at Rosenfeld Injury Lawyers for a free consultation to review your case. We’ll explain your rights and options clearly and won’t charge any fees unless we recover compensation for you. Let our experienced legal team fight to ensure you receive the full benefits your family deserves.

Call us at (888) 424–5757 or fill out our contact form.

All content undergoes thorough legal review by experienced attorneys, including Jonathan Rosenfeld. With 25 years of experience in personal injury law and over 100 years of combined legal expertise within our team, we ensure that every article is legally accurate, compliant, and reflects current legal standards.