Life Insurance – Frequently Asked Questions
- 16/07/2025
- Posted by: Appeal Avenue
- Category: FAQs
What is life insurance?
Life insurance provides a lump-sum payout if you die during the policy term. It’s designed to support your loved ones financially—helping with mortgage payments, childcare, funeral costs, or simply easing the burden of everyday living expenses during a difficult time.
Some policies may also include extras such as critical illness cover, which provides financial support if you’re diagnosed with a serious illness, or terminal illness benefits, which allow an early payout if you’re given a terminal diagnosis with a life expectancy of less than 12 months. For more information, see our guides on ‘Declined Terminal Illness Claims’ and ‘Declined Critical Illness Claims’.
What does life insurance cover?
Most policies cover death caused by illness, accident, or natural causes. Suicide is usually included after the first twelve to twenty-four months of the policy. Insurers often carry out a detailed investigation, particularly if there are concerns about whether everything was properly disclosed during the application.
How do I make a claim?
To claim on a life insurance policy, contact the insurer as soon as possible. You’ll need to provide a copy of the death certificate and the policy number. The insurer will ask you to complete a claims form and may request further documents such as medical records or a coroner’s report.
There’s no strict time limit for making a claim, but acting promptly avoids unnecessary delays. Most claims are settled within six to eight weeks, though some take longer.
Why might a life insurance claim be declined?
Insurers refuse to pay out on life insurance claims for a number of reasons — they may say the policyholder didn’t disclose something about their health or lifestyle when they took the policy out (this is referred to as non-disclosure or misrepresentation; you can find out more about this on our ‘non-disclosure and misrepresentation page’). Claims can also be declined if the cause of death is excluded under the terms of the policy, or if the policy had lapsed or was never formally accepted. The insurer should tell you the reason why they have declined to pay out on the life insurance claim.
If your claim is rejected, we’ll help you understand your options and whether there’s a basis to challenge the decision—all at no cost to you. If you’d prefer more hands-on support, we also offer a no win, no fee advocacy service, where we can act on your behalf—so if we’re not successful, you won’t pay a thing.
Can I challenge a declined claim?
If you believe the decision is unfair, you have the right to challenge it. Start by requesting a clear explanation of why the claim was rejected. Carefully review your policy terms, application details, and any medical evidence the insurer used in their assessment.
Should the insurer fail to resolve the issue within eight weeks (or issue a final response sooner), you can escalate the case to the Financial Ombudsman Service for an independent review.
We’ve created a separate guide on ‘tips for making a complaint or appeal’ to help you through the process. If you need to chat things through, we’re here to guide you through your options at no cost.
What if the issue is with my adviser or broker?
If a financial adviser or broker mis-sold your policy—by failing to explain the cover properly or submitting incorrect details—you may have grounds for a complaint or compensation claim. You can request all records and documents, including call recordings, to support your case.
We can help you understand your rights for free, and if you decide to pursue a complaint, our no win, no fee advocacy service ensures you get the support you need—without any upfront costs.
Will life insurance pay out for terminal illness?
Not all policies automatically include terminal illness cover, so it’s important to check your policy terms. Some policies allow an early payout if the policyholder is diagnosed with a terminal illness and has a life expectancy of less than 12 months, but others may have specific exclusions or conditions that prevent this.
If your claim has been declined, our guide on Declined Terminal Illness Claims explain how these claims work and what steps you can take to challenge the decision.
Will life insurance pay out after suicide?
Yes, most modern UK life insurance policies cover suicide after a qualifying period—usually 12 to 24 months. However, insurers will review medical records and other information to ensure the policy was taken out in good faith and that there was no material non-disclosure.
Will life insurance pay out for alcohol or drug-related deaths?
If alcohol or drug use played a role in the death, insurers will typically review medical records to determine whether this was disclosed at the time of application. If the policyholder accurately reported their usage and met the policy terms, a payout may still be possible. However, if substance use was not declared and the insurer finds evidence of undisclosed risk factors, they may investigate further and potentially decline the claim.
Some policies include specific exclusions for deaths related to alcohol or drug use, meaning claims could be denied if the insurer determines the cause of death falls within these exclusions. If a claim is declined, policyholders or beneficiaries have the right to challenge the decision and request a review. We provide free guidance to help you understand your rights, and if you choose to dispute a claim, our no-win, no-fee advocacy service ensures you receive the support you need—without any upfront costs.