Life insurance is meant to provide financial stability during a time of loss, yet many families find themselves facing unexpected denials—especially when the death occurs within the first two years of coverage. While roughly 60% of U.S. adults carry some form of life insurance, many are unaware of the contestability period, a clause that allows insurers to challenge claims during this critical window.
The result? Grieving families are often left with delayed or denied death benefits—right when they need financial support the most. But just because a claim has been denied doesn’t mean it’s over. With experienced legal help, many denials can be overturned.
What Is the Life Insurance Contestability Period?
The contestability period is a provision found in nearly all life insurance policies. It gives the insurance company the right to investigate a claim in the first two years after the policy is issued. If the insured dies within this window, the insurer can review the original application and supporting documents to look for inconsistencies, misstatements, or omissions.
If they find what they believe to be a material misrepresentation—information that, if disclosed, would have changed the underwriting decision—they may deny the claim or attempt to rescind the policy altogether.
Common Reasons for Denial During the Contestability Period
Life insurance companies often cite the following as reasons for denying a claim within the contestability window:
Undisclosed Medical Conditions
If the insured failed to disclose a health issue—such as high blood pressure, a prior surgery, or mental health treatment—the insurer may claim the application was incomplete or misleading.
Inaccurate Personal Information
Even seemingly minor errors—like misstating weight, smoking status, or prescription use—can be used against beneficiaries.
Omitted Medical History or Family Conditions
Some applications ask about family history or prior diagnoses. If an insurer finds that information was left out, they may assert that the omission was material to their risk evaluation.
Application Mistakes
Unintentional errors made by the policyholder—or even the agent filling out the form—can still be grounds for denial if they impact the underwriting decision.
Example: A man in Illinois died from a heart condition 14 months after his policy began. His claim was denied when the insurer discovered he hadn’t disclosed prior cholesterol issues—despite his doctor never diagnosing heart disease. The insurer called it a material misstatement. His family fought back and, with legal help, recovered the full death benefit.
Are All Denials During the Contestability Period Valid?
No—and that’s a key point. Just because the insurance company claims there was a misrepresentation doesn’t mean they’re right. Many denials during this period are based on irrelevant or immaterial details that had little or no impact on the policy’s issuance.
In other cases, the alleged misstatements are based on vague questions, incomplete medical records, or assumptions the insurer didn’t verify at the time the policy was issued.
Insurers often rely on beneficiaries not knowing their rights. They expect that grieving families will accept a denial without challenging it. That’s why consulting a life insurance attorney is so important.
What to Do If Your Life Insurance Claim Is Denied Within Two Years of Policy Issuance
If your claim is denied during the contestability period, don’t give up. Take these immediate steps:
Request the Official Reason for Denial
Insurers are required to provide a written explanation. Request the full claim file, including the application and any investigation reports.
Gather Supporting Documents
Obtain medical records, doctor’s notes, prescription history, and any correspondence that might explain the omitted or disputed information.
Consult a Life Insurance Lawyer with Experience in Contestability Disputes
These cases are highly technical and require a strategic legal approach. Our firm routinely prepares detailed legal briefs (100–200 pages) that rebut the insurer’s findings, highlight procedural errors, and demonstrate why the misrepresentation was not material.
We’ve reversed hundreds of contestability-based denials—often without needing to go to court.
Conclusion: Don’t Let the Contestability Clause Be Used Against You
The contestability period is designed to protect insurers from fraud—not to punish honest families for paperwork errors. If your loved one’s life insurance claim was denied during this two-year window, don’t assume the insurer is right.
With the right legal representation, you may be able to recover the full death benefit and hold the insurance company accountable.
Contact us today for a free consultation. We don’t charge unless we win. Let us help you fight back against a denial based on the contestability clause and secure the benefits your family deserves. If you need Pennsylvania interpleader lawsuit guidance call us.