Can Life Insurance Be Denied? 
Life insurance claims can be denied but it is very rare for a life insurance company to not pay the death benefit proceeds if the life insured has died and proof of death has been submitted . If death was by suicide or a material misrepresentation in the first two policy years of the policy , the claim will be investigated . If a life insurance company does not pay a death claim in these situations at the conclusion of their investigation , they would return premiums paid with interest . 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 normally contest a claim after the first two years of a policy except in very limited circumstances of fraud . 