Life
insurance policies have a two year contestable period after which it is difficult for life insurance policies to be contested.
Even during the first
two years, the life insurance company can only deny life insurance coverage for material
misstatements (information that was withheld from, or misstated on, the application for life insurance that is serious enough that it would have caused the life insurance policy to be altered or
denied when the insured applied for the life insurance coverage).
Other
things that might cause a life insurance policy to be contested for coverage are:
1. Questions
as to whether the life insurance policy was in force at the time of death, or
2. Death as the result
of suspicious circumstances - For Example, suspected suicide occurring within the first two years of being insured, or
3. Murder of the insured by a beneficiary.
Most
life insurance policies will never be contested because death will occur after
the two year period of contestability.
For those life insurance policies that are contested, very few ever result in the
death benefit not being paid.
