When Does Life Insurance Not Pay Out? 
Life insurance `` pays out '' at the time of a certified death certificate is received by the carrier . There are very exceptions which would be fraud or misrepresentation at the time of application or suicide . Both are excluded for the first two years the policy is in force . After two years even then the policy would `` pay out '' . There are smaller guaranteed issue plans with a schedule of benefits paid over time that are subject to the same two year rules . Even in cases of fraud or suicide the life insurance company would refund all of the premiums paid . 