Under What Circumstances Will Life Insurance Not Pay? 
There are a few instances where Life Insurance will not pay . Some are not very probable to occur but they exist nevertheless ; 1 -RRB- 2 year contestability period - Insurers have the right to contest any claim filed within the first 2 years of being issued . 2 -RRB- Lies on application - if you apply for insurance and it is issued and then it is found out that you lied -LRB- within the first two years of being issued -RRB- , depending on the lie the insurance can be denied or the ony amount received back to beneficiary may be the premiums paid . 3 -RRB- Insurance company goes defunct - highly unlikely and there are safeguards in place to ensure that claims are paid . 4 -RRB- You apply for a policy but dont pay anything . If death occurs during this period an insurance company has a right to not pay a claim . For the most part , when you purchase insurance from a reputable company , the claim will be paid . Insurance companies are known for paying on valid claims . 