Can Life Insurance Deny A Claim? 
If an insured commits suicide within the first two years of coverage , the claim would be denied under virtually any company . Also , if someone commits a material fraud in their application and that is detected within the first two years , the policy would be cancelled with the money refunded . Otherwise there would be no valid ground for refusing a claim on life insurance . However , some lesser companies do all they can do to deny a claim or to delay payment . On the other hand , New York Life is a prompt payer on claims and is proud of that fact . 