Life insurance is meant to provide peace of mind—but when a loved one passes away, beneficiaries are often shocked to discover the insurer is delaying, denying, or disputing the claim. In Florida, the type of life insurance policy—term or whole life—can significantly impact how a claim dispute unfolds.
This article explains the practical and legal differences between term life and whole life insurance policies and what really matters when disputes arise under Florida law.
The Basics: Term Life vs. Whole Life Insurance
Before diving into disputes, it’s important to understand how these policies work.
Term Life Insurance
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Provides coverage for a specific period (e.g., 10, 20, or 30 years)
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Pays a death benefit only if the insured dies during the term
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No cash value
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Typically lower premiums
Whole Life Insurance
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Provides lifetime coverage
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Includes a cash value component that grows over time
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Higher premiums
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Can be borrowed against or surrendered
While these differences may seem financial, they often become legal battlegrounds after death.
Why Term Life Policies Are Commonly Disputed in Florida
Term life disputes in Florida often revolve around coverage timing and premium status.
Common Issues With Term Life Claims
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Policy lapsed before death due to missed premiums
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Disputes over grace periods
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Confusion about automatic payments or employer-based term coverage
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Alleged material misrepresentations in the application
Because term policies expire, insurers frequently argue that coverage ended shortly before death—even when beneficiaries believe the policy was still active.
💡 In Florida, insurers must strictly comply with statutory notice requirements before lapsing a policy. Failure to do so can invalidate a denial.
Why Whole Life Claims Trigger Different Disputes
Whole life policies are less likely to lapse unexpectedly, but they present other dispute risks.
Common Whole Life Claim Disputes
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Allegations of policy loans reducing the death benefit
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Claims that the policy was surrendered before death
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Disputes over beneficiary changes, often involving family members
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Arguments that the policy was void due to misrepresentation during underwriting
Because whole life policies can last decades, insurers often scrutinize old applications and medical disclosures—especially if death occurs within the first two years.
Contestability Period: Why It Matters More Than Policy Type
In Florida, both term and whole life policies are subject to a two-year contestability period.
During this time, insurers may:
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Investigate the application for inaccuracies
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Deny claims based on alleged material misrepresentations
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Attempt to rescind the policy entirely
After the contestability period expires, the insurer’s ability to deny a claim is significantly limited, regardless of whether the policy is term or whole life.
📌 Many wrongful denials hinge on whether the alleged misstatement actually mattered to the insurer’s underwriting decision.
Beneficiary Disputes: More Common in Whole Life Policies
Because whole life policies often remain in effect for decades, they are more likely to involve competing beneficiaries.
Typical Florida beneficiary disputes include:
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Ex-spouses vs. current spouses
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Children from prior marriages
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Allegations of undue influence or forgery
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Claims that beneficiary changes violated divorce agreements or court orders
Florida courts closely examine policy documents, beneficiary forms, and surrounding circumstances—not just family arguments.
What Florida Beneficiaries Should Focus On
Whether the policy is term or whole life, successful Florida life insurance claims often come down to:
✔ Whether the policy was in force at death
✔ Whether premiums were properly handled
✔ Whether alleged misstatements were material
✔ Whether beneficiary designations were valid under Florida law
✔ Whether the insurer complied with Florida statutory notice requirements
Denied or Delayed Claim? Legal Help Matters
Insurance companies have teams of adjusters and lawyers trained to reduce payouts. Beneficiaries often don’t realize that a “request for more information” is actually the first step toward denial.
If your Florida life insurance claim has been delayed, denied, or disputed—whether involving a term life or whole life policy—legal guidance can make the difference between recovery and permanent loss.
Need Help With a Florida Life Insurance Claim?
An experienced Florida life insurance attorney can:
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Challenge wrongful denials
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Enforce lapse-notice and grace-period protections
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Resolve beneficiary disputes
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Litigate bad faith insurance practices
📞 If you’re facing a life insurance dispute in Florida, don’t assume the insurer’s decision is final.
Have you or someone you know been denied a life insurance claim? Contact Florida Life Insurance Claims Lawyer J.P. Gonzalez-Sirgo by dialing his direct number at (786) 272-5841, calling the main office at (305) 461-1095, or Toll Free at 1 (866) 71-CLAIM or email Miami Attorney Gonzalez-Sirgo directly at jp@yourattorneys.com or by text at (305) 929-8935.
