Life Insurance Living Benefits Rider
Policyholders may have claims against life insurers who failed to properly disclose or administer living benefits riders.
NationwideClaims may be time-sensitive — deadlines may apply
If you were affected by the Life Insurance Living Benefits Rider, contact our legal team immediately to protect your rights.
Act NowCase Overview
What Happened
The Life Insurance Living Benefits Rider case involves serious harm caused by negligence or corporate wrongdoing. Our legal team is investigating claims on behalf of affected individuals.
Who Is Affected
Individuals, families, and businesses who suffered damages may be eligible to pursue compensation through this coordinated legal action.
Why It Matters Legally
Holding responsible parties accountable requires aggressive legal representation. Our attorneys are building cases to secure maximum compensation for victims.
Life Insurance Living Benefits Rider Litigation
"Living benefits" or accelerated death benefit riders attached to permanent and term life insurance policies promise policyholders a lifeline: the ability to access a portion of their death benefit while still alive after being diagnosed with a terminal, chronic, or critical illness. Unfortunately, a growing wave of litigation alleges that major insurers have systematically denied, delayed, or underpaid living benefit claims, leaving seriously ill policyholders without the funds they were promised when they need them most.
How Living Benefits Are Supposed to Work
Most living benefit riders pay a percentage of the policy's face value upon a qualifying diagnosis — typically a terminal illness with a defined life expectancy, a chronic illness preventing performance of activities of daily living, or a critical illness such as cancer, heart attack, stroke, kidney failure, or major organ transplant. Policyholders pay additional premiums (or accept reduced face values) in exchange for these features and reasonably expect prompt access to the funds.
How Insurers Are Failing Policyholders
Common bad-faith conduct documented in living benefit cases includes refusing to apply contractual definitions of "terminal" or "chronic" illness in good faith; demanding excessive medical documentation and re-certification; delaying benefit determinations for months while the policyholder's condition deteriorates; underpaying claims by manipulating actuarial discount rates; misrepresenting that the policy lacks coverage for the diagnosed condition; and pressuring policyholders to surrender or borrow against their policy in lieu of paying the rider benefit.
Legal Claims Against the Insurer
California law imposes a duty of good faith and fair dealing on every insurance contract. Insurers that delay, deny, or underpay legitimate claims face liability for breach of contract, breach of the implied covenant of good faith and fair dealing (insurance bad faith), elder abuse (Welfare and Institutions Code §15610.30 where the insured is 65 or older), and unfair business practices under Business and Professions Code §17200. Bad-faith plaintiffs may recover not only the policy benefits, but also consequential damages, emotional distress damages, attorneys' fees under Brandt, and punitive damages.
Who May Qualify
Policyholders, their spouses, family caregivers, and beneficiaries who have been denied or underpaid on a living benefit rider claim — or who experienced unreasonable delays — may have a claim. Surviving family members of policyholders who died before receiving their living benefits may pursue the claim on behalf of the decedent's estate.
Damages Available
Recovery may include the full unpaid benefit amount, interest, consequential damages (including the cost of medical care and end-of-life expenses the policyholder had to forgo), emotional distress damages, attorneys' fees under California's Brandt rule, and punitive damages where the insurer's conduct is shown to be malicious, oppressive, or fraudulent.
Why Keosian Law
Our insurance bad-faith practice has decades of experience holding insurers accountable for wrongful denial of policy benefits. We move quickly on living benefit cases because policyholders are often gravely ill, and we understand the urgency of securing immediate access to funds and ongoing financial relief for our clients and their families.
Do You Qualify?
You may be eligible for the Life Insurance Living Benefits Rider litigation if you meet any of the following criteria:
Have a life insurance policy with a living benefits rider Were diagnosed with a terminal or chronic illness Were denied living benefits you believe you were entitled to Were not informed of available living benefits Call (866) 222-2020Damages You May Recover
Victims of the Life Insurance Living Benefits Rider may be entitled to compensation for a range of losses, including:
Property Damage
Structural damage, personal belongings, and rebuilding costs
Financial Loss
Out-of-pocket expenses, underpaid claims, and denied benefits
Emotional Distress
Anxiety, trauma, and diminished quality of life
Medical Costs
Treatment, rehabilitation, and ongoing care expenses
Loss of Income
Wages lost during recovery and business interruption
Displacement
Temporary housing, relocation, and living expense increases
Building a Strong Claim
What Strengthens Your Claim
- Photos and videos of the damage
- Insurance policy and correspondence
- Medical records and bills
- Repair estimates and contractor invoices
- Financial records showing losses
- Government reports or investigation findings
Common Insurer Tactics
- Delaying claims processing to pressure settlements
- Undervaluing property damage assessments
- Denying coverage based on policy technicalities
- Requiring excessive or redundant documentation
- Offering lowball settlements before full damages are assessed
- Misrepresenting policy terms or coverage limits
Case Timeline
Case Filed Invalid Date Investigation Litigation Trial / Claims Resolved Case Filed CURRENT Invalid Date Investigation Litigation Trial / Claims ResolvedWhy Keosian Law
We take on the cases others won't — and we prepare every one for trial.
Trial-Ready Preparation
Every case is prepared as if it will go to trial. Insurance companies know we mean business.
Selective Case Intake
We only take cases we believe in. When we take yours, we commit fully to winning.
No Fees or Costs Unless We Recover
No attorney fees or costs unless we recover for you.
Your Legal Team
Harout G. KeosianFounding Partner
Melkon R. MelkonianManaging Attorney and Partner
Zareh Jack KeosianPartner
Meet Our Full Legal TeamFrequently Asked Questions
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If you believe you may qualify for the Life Insurance Living Benefits Rider litigation, please complete the form below. A representative will review your information and contact you within 2-3 business days to discuss your potential claim.