When Do Life Insurance Companies Not Pay? 
In the first two years after the policy has been kept in force there is a contestability period for suicide , misrepresentation and fraud . Keep in mind that certain life insurance companys death claim due diligence processes may continue after the two year contestability period based on some forms of fraud and criminal activity surrendering the insured 's death . If it feasible that a life insurance company to experience financial problems , fall into receivership of the state -LRB- a form of bankruptcy -RRB- and affect claims paying ability . 