4 Things You Must Do to Avoid Life Insurance Claim Delays or Denials

Financial Horizons: Insights for Building Wealth and Securing Your Legacy

By Dr. Jose G. Cardenas, Chief Tax Strategist at The C & R Group, LLC

Life insurance is designed to bring peace of mind and financial protection to your loved ones. But what many people don’t realize is that a claim can be delayed—or even denied—if certain details are overlooked. Fortunately, you can prevent these issues by taking a few proactive steps today.

1. Provide Correct Information

Accuracy is non-negotiable when it comes to life insurance applications. Misstatements about age, health history, or lifestyle can cause problems later. Even small inaccuracies—like forgetting to mention a past medical condition—can give insurers grounds to delay or reduce a payout. Always provide complete, honest, and up-to-date information.

2. Designate a Beneficiary

One of the most common mistakes is failing to name—or update—a beneficiary. If no beneficiary is listed, or if the named person has passed away, the death benefit may get tied up in probate court. This can cause long delays and additional legal costs for your loved ones. Review your beneficiary designations regularly, especially after major life events like marriage, divorce, or the birth of a child.

3. Pay Your Premiums on Time

A policy is only active if premiums are paid. Missed or late payments can cause a policy to lapse, leaving your family without the protection you intended. Many insurers offer automatic payment options—take advantage of them to avoid costly oversights.

4. Provide All Required Documentation

When it’s time to file a claim, insurers will need documents such as a certified death certificate and proof of identity. Preparing these in advance—or at least making sure your family knows where to find them—can make the claims process much smoother.

The Bottom Line
Life insurance is one of the most powerful tools for protecting your family’s financial future. But to ensure your loved ones receive the benefit without delay, you must keep your policy current, accurate, and properly maintained. A few simple steps now can make all the difference later.

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About the Author
Dr. Jose G. Cardenas is a retired U.S. Army Finance Officer and the Chief Tax Strategist at The C & R Group, LLC. With a Doctorate in Business Administration and over 20 years of experience in financial strategy, tax planning, and life insurance, Dr. Cardenas helps individuals and business owners protect their wealth and build a legacy. Learn more at www.thecrgroupllc.com.

📌 Disclosure:
This article is for educational and informational purposes only and is not intended to serve as personalized legal or investment advice. Dr. Jose G. Cardenas, DBA, provides tax advisory services through The C & R Group, LLC. Insurance strategies, including Indexed Universal Life (IUL) and annuity products, may be offered through his role as a licensed financial professional affiliated with Experior Financial Group.