Does Life Insurance Always Pay Out? 
The claims paying ability of a life insurance company is assumed by those who purchase life insurance policies . And even if the historical record is untarnished in this regard , it cant be cited by a licensed agent , nor can the guaranteed state fund be used in a sales presentation to manipulate the prospect . It is possible that a life insurance company could fall into receivership and the claims exceed the guaranteed fund and in such a case the life insurance may not pay the beneficiaries . Including in this answer is the two year life insurance company contestability period covering suicide and fraud . And some cases of fraud may extend past the two year contestability . The investigation of a homicide could reveal criminal intent by the beneficiaries , thus denying the claim . 