The Main Reasons Life Insurance Claims Are Declined
UK life insurers pay out on 99%+ of life insurance claims. The small percentage that are declined almost always fall into one of the following categories:
1. Non-Disclosure
Non-disclosure is the most common reason for a declined claim. It occurs when a policyholder fails to declare relevant medical information at the point of application — either deliberately (fraud) or inadvertently.
Insurers access GP records when assessing claims. If they find a medical condition that was not declared on the application and was relevant to the underwriting decision, they may decline the claim or reduce the payout.
How to avoid it: Disclose everything. If you are unsure whether something is relevant, disclose it anyway. An independent adviser can help you complete your application accurately and comprehensively.
2. Excluded Conditions or Causes of Death
Most life insurance policies exclude very few causes of death, but common exclusions include:
- Suicide: Excluded during an initial period (typically 12–24 months)
- Specific health conditions: If a pre-existing condition was excluded from the policy at underwriting, deaths caused by that condition may not be covered
- Drug or alcohol abuse: Some policies exclude deaths directly caused by drug or alcohol abuse (though not always)
- Dangerous activities: Deaths during undisclosed hazardous activities may be challenged, though this is rare for standard life insurance
3. Fraud
Deliberate misrepresentation on an application is fraud and will result in a claim being declined and the policy voided. UK insurers share fraud data through the IFB (Insurance Fraud Bureau), and fraudulent claims are actively prosecuted.
4. Lapsed Policy
If premiums are not paid and the policy lapses, there is no valid policy and no claim can be made. Most insurers allow a grace period (typically 30 days) before a policy lapses due to missed payment.
5. Policy Term Has Ended
Term life insurance only pays out if death occurs during the policy term. Death after the term ends is not covered. This is not a failure of the policy — it is by design, and reinforces the importance of choosing the right term length.
Frequently Asked Questions
Yes — if non-disclosure is discovered during the claims process, a claim can be declined regardless of how many years premiums have been paid. This is why complete and accurate disclosure at the point of application is so critical. The vast majority of declined UK life insurance claims are due to non-disclosure, not insurer bad faith.
Inadvertent non-disclosure is treated differently from deliberate fraud, but can still result in a declined or reduced claim. If you realise after taking out a policy that you forgot to disclose something relevant, contact your insurer or adviser immediately to correct the record. Acting promptly demonstrates good faith and significantly reduces the risk of any claims issue.