Under What Circumstances Will Life Insurance Not Pay? 
Basically it comes down to either suicide or a material misrepresentation in the first two policy years of the policy . It is rare for a life insurance company to not pay a death claim -LRB- in which case they would return premiums paid with interest -RRB- . Life insurance is something you need to qualify for in advance - the insured must be insurable , the owner must have an insurable interest , etc. . For a life insurance claim to be denied , after an investigation , the insurance company would have to contest it within the first two policy years on the basis of a material misrepresentation made during the application process or the insured would have to have committed suicide within the first two policy years . An insurance company may not contest a claim after the first two years of a policy . 