New Jersey Life Insurance Claim Denial

When a loved one passes away, life insurance benefits are supposed to provide security and support during a difficult time. But if your life insurance claim has been denied, you may feel angry, confused, and unsure of where to turn. Fortunately, a denied life insurance claim in New Jersey is not the end of the road.

At the Law Offices of Jason Turchin, we represent clients throughout New Jersey in challenging wrongful claim denials. Whether your case involves a delay, a beneficiary dispute, a lapse in coverage, or an allegation of material misrepresentation, we can help you understand your rights and fight for the money your loved one intended for you.

Common Reasons Life Insurance Claims Are Denied in New Jersey

Insurance companies often deny claims based on technicalities, vague policy language, or after conducting an investigation following the death. The most common reasons cited for denial in New Jersey include:

• Material misrepresentation on the policy application
• Death occurred during the contestability period
• Lapsed policy due to missed premium payments
• Death falls under a policy exclusion (e.g., suicide, felony, intoxication)
• Beneficiary dispute or change shortly before death
• Policyholder was allegedly ineligible for coverage
• Incomplete or conflicting beneficiary designation forms
• Claim filed too late or lacking documentation

Many of these denials can be challenged or reversed, especially if the insurer acted unfairly or failed to comply with New Jersey’s insurance laws.

Understanding New Jersey’s Life Insurance Laws

New Jersey regulates life insurance under a combination of state insurance law and federal law, particularly for employer-sponsored plans governed by ERISA (Employee Retirement Income Security Act). Here are some key provisions that may impact your claim:

1. Contestability Period

Most policies include a two-year contestability period. During this time, the insurer can investigate and deny claims based on alleged misstatements in the application. After that period, the company must pay unless it can prove fraud.

2. Grace Period for Missed Payments

New Jersey law (N.J.S.A. § 17B:25-3) requires life insurance policies to provide a grace period of at least 30 days for missed premium payments. If the policyholder died within that window, coverage may still apply.

3. Beneficiary Protections

Courts in New Jersey may review last-minute beneficiary changes for signs of undue influence or lack of capacity. If the policyholder had dementia or was pressured into making changes, the court may reverse the designation.

Case Hypothetical– Misrepresentation Denial in Newark

A client in Newark comes to us after a $500,000 life insurance claim is denied. The insurer claims that the policyholder failed to disclose a history of high blood pressure on the application. However, the condition was well-controlled, the doctor was disclosed on the application, and the condition had no connection to the cause of death.

We review the original application, the denial letter, and medical records, and can try to argue that the misstatement was not material under New Jersey law.

What To Do If Your Life Insurance Claim Was Denied in New Jersey

If you receive a denial letter, you should:

1. Request a copy of the full policy and application
2. Review the denial letter for the reason given
3. Do not accept the denial as final
4. Contact a New Jersey life insurance attorney to review your case

You may still have legal options, even if the insurance company claims their decision is final.

We Handle Life Insurance Denials Across New Jersey

Our firm serves clients statewide, including:

• Newark
• Jersey City
• Paterson
• Elizabeth
• Edison
• Trenton
• Atlantic City
• Toms River
• Camden
• Cherry Hill

Whether your loved one lived in northern, central, or southern New Jersey, we can help you file an appeal or lawsuit to challenge a wrongful denial.

How We Can Help With a Denied Claim

The Law Offices of Jason Turchin offers:

• Free policy review to assess your denial
• Formal appeals directly with the insurer
• Filing lawsuits in state or federal court, including ERISA claims
• Representation in interpleader cases
• Beneficiary dispute resolution
• Negotiation of delayed or partial payment claims
• Protection of your rights under NJ law

We work on a contingency fee basis in most cases, which means you don’t pay unless we win or recover money for you.

FAQs – Life Insurance Claim Denied in New Jersey

Can I sue the insurance company for denying my claim?

Yes. If your life insurance claim was wrongfully denied, you can file a lawsuit in New Jersey state court—or in federal court if the policy is governed by ERISA.

How long do I have to file a lawsuit?

In New Jersey, most life insurance lawsuits must be filed within six years of the denial. However, deadlines may be shorter under ERISA or for certain federal policies.

What if the policy lapsed for nonpayment?

You may still have a claim if the insurer failed to send proper notices, or if the death occurred during the grace period.

Can I challenge a beneficiary designation?

Yes. If there is evidence of fraud, forgery, undue influence, or mental incapacity, the court may invalidate a beneficiary change.

What is a material misrepresentation?

This refers to a false statement on the application that the insurer claims would have changed their decision to issue the policy. Not all misstatements qualify—especially if they didn’t impact the cause of death.

Do I need a lawyer to appeal a denial?

It’s strongly recommended. Life insurance companies have legal teams working for them—you should have someone advocating for you, especially if the claim is significant or complex.

Can a denial be reversed without going to court?

Yes. Many cases are resolved through appeals or negotiation before a lawsuit is necessary. However, we prepare every case as if litigation may be required.

What if the insurer says the claim is “under investigation”?

Delays may be a tactic. If your claim has been under review for more than 60-90 days, we can step in to demand resolution or escalate the matter.

Will I need to go to court?

Not always. Many cases are resolved without a trial, but we’re prepared to take your case to court if necessary.

How much does it cost to hire your firm?

We typically work on a contingency fee basis. You won’t pay any legal fees or costs unless we recover money for you.

Don’t Let a Denied Claim End the Conversation

Just because an insurance company denies your claim doesn’t mean they’re right. Many denials are based on outdated forms, vague exclusions, or unfair interpretations. You may still be entitled to the full benefit—or more.

At the Law Offices of Jason Turchin, we’re committed to helping New Jersey families recover the life insurance proceeds they deserve. Our team is ready to fight for your rights and help hold the insurance company accountable.

Call (800) 337-7755 or contact us through VictimAid.com to schedule a free consultation.