What if someone dies soon after getting life insurance? If you pass away soon after purchasing life insurance, your beneficiary could face delays or even a denied claim.
Why? Because of something called the contestability period.
In this article, I’ll break down how it works, what happens if someone dies within it, and how a life insurance attorney can help you avoid unnecessary setbacks for your family.
The good news is that a denial isn’t always final. If you’re facing a delayed or denied claim, it’s worth getting clarity before assuming the worst. Contact my team for a free case evaluation to talk through your situation.
What Is the Contestability Period?
The contestability period is typically the first 2 years after a life insurance policy is issued.
During this time, the insurance company has the right to:
- Investigate the cause of death
- Review the original application answers
If the insurer discovers any inaccurate or incomplete information, they may deny the claim, even if the premiums were paid on time.
What Happens If Someone Dies During the Contestability Period?
Claims during this period face extra scrutiny. The insurer may investigate for issues like:
- Suicide
- Alcohol or drug use
- Undisclosed medical conditions
But death during this period does not automatically mean a denial. If the application answers were honest and accurate, most legitimate claims are still paid.
What Happens If a Claim Is Denied Due to Misrepresentation or Fraud?
Common red flags can include:
- Misstatements about medical history
- Omitting lifestyle factors like smoking or drinking
- Failing to disclose a high-risk occupation
If the insurer proves fraud or misrepresentation, they may:
- Void the policy entirely
- Refuse to pay the death benefit
- Return only the premiums paid
What Happens After the Contestability Period Ends?
Once the 2-year period passes, the insurer can no longer deny your claim due to application misstatements—unless there is clear fraud. At this stage:
- Claims are typically processed faster
- There are fewer complications
- The policy is more secure
This provides peace of mind to both the policyholder and their beneficiary.
How Can You Make Sure That Your Life Insurance Policy Is Secure?
To avoid issues, I recommend taking the following steps:
- Be completely honest on your application—even about uncomfortable details
- Disclose any pre-existing conditions
- Share lifestyle habits like:
- Drinking
- Smoking
- High-risk hobbies
- Include any travel plans or foreign residencies
- Keep records of:
- Communication with the insurer
- Medical exams related to the policy
If you realize that you made an error on your application, contact the insurer immediately to amend it.
Taking these steps now can make all the difference for your family later. And if you’re unsure whether your policy is fully secure, don’t leave it up to chance—reach out to our team today for guidance.
Want to learn more about protecting your coverage and avoiding common mistakes? Check out our YouTube playlist for more insights on life insurance claims and how policies are evaluated.