Life Insurance Disputes in Dallas, Texas

What Is Life Insurance? How Do Life Insurance Policies Work?

Life insurance is a legally binding contract between the policyholder and an insurance company, designed to provide financial stability to loved ones after the policyholder’s death. In exchange for regular premium payments, the insurer agrees to pay the named beneficiaries a tax-free lump sum death benefit. This benefit can:

• Help cover funeral costs
• Pay off outstanding debts
• Replace lost income
• Fund college expenses
• Support long-term living needs

In Texas, most life insurance policies fall into two main categories:

• Term life insurance, which provides coverage for a specific number of years (e.g., 10, 20, or 30). The policy pays the full benefit if the insured passes away during the term. If the term expires, coverage ends unless renewed or converted.
• Whole life or permanent life insurance, which offers lifelong coverage and typically includes a cash value component that builds over time. This value can be borrowed against or used to pay future premiums.

Some individuals also receive group life insurance through an employer, which is usually governed by federal ERISA law. While these policies are often more affordable, they can involve complex rules around eligibility, coverage periods, and appeals.

Under the Texas Insurance Code and longstanding contract law principles, insurers must handle claims promptly, fairly, and in good faith. If a claim is denied, delayed, or mishandled, beneficiaries have the right to contest the decision through administrative appeals or civil litigation.

Most policies include a two-year contestability period, during which the insurer can investigate and deny claims based on alleged misrepresentations. After that period, however, policies generally become incontestable unless intentional fraud is proven.

What Should I Do if My Life Insurance Claim is Denied in Dallas?

A denied life insurance claim can create severe financial and emotional strain, but a denial doesn’t have to be the final word in Texas. If your claim has been rejected, follow these steps to protect your rights and improve your chances of recovery:

1. Review the denial letter. Insurers are required to explain why they denied the claim. Look closely at the cited policy provisions and the reasons given—common justifications include alleged misrepresentation, policy lapse, or beneficiary disputes.
2. Gather all related documents. Collect the insurance policy, application, medical records (if applicable), premium payment history, correspondence with the insurer, and a copy of the denial notice.
3. Avoid making statements or signing anything without legal advice. Insurers may use your responses to further limit or deny your claim.
4. Understand your rights under Texas law. The Texas Insurance Code provides strict rules around prompt payment and fair claim handling, and you may be entitled to interest, attorney’s fees, or even additional damages.
5. Contact a life insurance attorney familiar with Texas law. A lawyer can evaluate whether the denial was legal, identify policy terms or state statutes violations, and help you file an appeal or lawsuit if needed.
6. Don’t delay. Texas imposes deadlines (statute of limitations) for filing lawsuits over denied claims. Acting quickly preserves evidence and protects your legal options.

Your Family’s Future Deserves More Than a Denial

Vargas Gonzalez Delombard, LLP uses the full force of Texas insurance law to protect our clients’ rights and recover what they’re owed. Our firm operates on a contingency fee basis—so you pay nothing unless we win—and our bilingual team ensures every client receives clear, accessible legal guidance. If your life insurance claim has been delayed, denied, or disputed in Dallas or anywhere in North Texas, don’t wait. Contact us today to schedule a free case evaluation and let us fight for the benefits your loved one intended you to have.