1.The death happened during the contestability period/failure to disclose a medical condition or other pertinent information. If an insured dies within the first two years from the date a life insurance policy becomes effective, the insurance company has the right to contest the policy. If, while contesting the policy, the insurance company finds information not reflected on the application, it may deny coverage. The insurance company may refuse to pay out the death benefit, even if their death had nothing to do with the misrepresentation.

2.The type of death wasn't covered in the policy. There are different life insurance policies for different situations. You could have an Accident Death policy that would not cover death from sickness for example. You could have a group policy through work that might have limitations on what events they would pay for. It's best to read your policy and gain an understanding of the coverages.

3.Policy premiums were not paid, leading to a lapse in payment. Usually, a life insurance policy is only active for as long as premiums are paid. When no premium is made when it is due, a policy may lapse/terminate. Denied claims due to lapse are very common and insurance companies often use nonpayment of premiums as a reason to deny a claim even when a claim should be paid.

4.Outliving a Term Life Insurance Policy. If you have term life insurance, you could potentially outlive the policy's term, meaning there would be no death benefit payout. If you need longer coverage, the policy might allow you to renew (at a higher price) when you reach the end of the term. Make sure you know your policy's deadline. As you get older the premium for life insurance is higher as well as the qualifications are stricter. You are better off getting a whole life insurance policy to avoid the potential of outliving the policy and needing to pay higher premiums.

Every delay or denial should be reviewed by an experienced life insurance attorney and contested if it appears that a claim was wrongfully delayed or denied. At Daisey Insurance, you and your family are very important to us. Call us at 302-337-9400 or visit our website at http://www.daiseyinsurance.com/index.htm to discuss your life insurance needs. We can provide coverage from many insurance carriers so you receive the insurance for your budget and needs!

Source : https://life-insurance-lawyer.com/reasons-life-insurance-companies-use-to-deny-your-claim/ and https://www.forbes.com/advisor/life-insurance/reasons-for-claim-denial/