Can a Life Insurance Company Deny a Claim After Two Years?
If your claim was denied because the insurer says your loved one misstated something on the application, one fact matters more than almost any other: how long the policy had been in force when they died.
The contestability period
Nearly every life insurance policy contains a contestability clause — typically two years from the date the policy is issued. During that window, the insurer may investigate the application and, if it finds a material misstatement, rescind the policy and deny the claim.
This is why a death shortly after a policy is issued triggers an investigation: medical records, pharmacy records, physician statements, sometimes an interview. It is lawful. It is also frequently overused.
What the insurer must actually prove
A denial requires more than finding an error. In most states the insurer must show the misstatement was material — that it would not have issued the same policy on the same terms had it known the truth. Some states also require the misstatement to relate to the cause of death, or require the insurer to prove intent to deceive. That burden is not easy to carry, and these denials fail more often than families expect. Common weaknesses:
The question was ambiguous or the answer was truthful as the insured understood it
An agent filled in or paraphrased the answers
The condition was minor, undiagnosed, or unrelated to the death
The insurer had the information already and issued anyway
The application was simplified-issue with only a handful of broad questions
Our firm recovered $150,000 on appeal in a claim denied during the contestability period for alleged material misrepresentation. ***Prior results do not guarantee a similar outcome.
After two years: the incontestability clause
Once the contestability period ends, the clause becomes a shield. In most states, the insurer can no longer rescind based on application misstatements — even ones it could have used earlier. There are narrow exceptions, which vary by state and policy: outright fraud in some jurisdictions, coverage that never existed, misstatement of age (usually adjusted rather than denied), and the suicide clause, which runs on its own timetable.
Insurers sometimes deny long-in-force policies anyway, hoping the family does not know the rule. If a claim on a five-year-old policy is denied for something on the application, that denial deserves immediate scrutiny.
What to do
Find the policy issue date and compare it to the date of death. Two years is the hinge.
Request the application the insurer relies on, plus everything it gathered in its investigation.
Look at how the questions were worded and who wrote the answers.
Do not concede materiality. It is the insurer's burden, not your family's.
Have the denial reviewed — especially if the policy was in force more than two years, which may end the inquiry entirely.
Contact Kadetskaya Law Firm, LLC
Our firm reviews denials for free and works on contingency — no fees unless we recover your benefits. If your life insurance claim has been denied otr delayed for weeks or months with no payment and no clear explanation, do not wait for the denial letter. The time to act is now.
(888) 510-2212
Free Consultation
No fees unless we win.
Kadetskaya Law Firm, LLC
630 Freedom Business Center Dr, 3rd Floor
King of Prussia, PA 19406
(888) 510-2212
info@life-insurance-lawyer.com
No fees unless we win.
Learn more about denied life insurance claims and delayed claims.
***This page is for general informational purposes only and does not constitute legal advice. Contact our firm directly for advice specific to your situation.
