Many people assume that when a life insurance policy is issued, the insurance company has already verified everything and made a final decision.
In reality, that is often not true.
To save money and issue policies quickly, many insurers rely on no exam or simplified underwriting. They accept self reported answers and do little or no investigation up front.
Instead, they rely on something called the contestability period.
The contestability period is usually the first two years of the policy. During this time, the insurer can conduct a full investigation after death and look for reasons to deny or reduce the claim.
This practice is often called post claim underwriting.
Why Insurers Use Post Claim Underwriting
From the insurer’s point of view, this is efficient.
They:
Issue policies quickly
Save money on underwriting
Collect premiums
And only do the deep investigation if someone dies
If the insured lives past the contestability period, the company usually never looks back at the application.
If the insured dies during the contestability period, the company suddenly examines everything.
Common Triggers for Contestability Investigations
When a death happens during the contestability period, insurers often start digging into:
Undisclosed medical conditions
Drug or alcohol use
Smoking or vaping history
Weight or height inaccuracies
Risky hobbies like scuba diving or climbing
Occupation or travel history
Income or age discrepancies
Even if the death was caused by something totally unrelated, such as a car accident, the insurer may still try to deny the claim if they find anything they believe was misstated on the application.
What the Insurer Can Do If They Find a “Problem”
If the insurer claims it found a material misrepresentation, two things usually happen.
Total Denial
The insurer claims that if they had known the truth, they would never have issued the policy at all. They rescind the policy and refuse to pay anything.
Reduced Payout
The insurer claims that the insured would have qualified, but only at a higher premium. They then reduce the death benefit to what that higher premium would have bought.
Both of these outcomes are frequently challenged and often overturned.
Most “Misrepresentation” Cases Are Not What They Sound Like
We routinely see denials based on:
Undiagnosed conditions
Symptoms the insured did not understand
Old or forgotten medical history
Questions that were vague or poorly worded
Mistakes made by the insurance agent
Minor inaccuracies that had nothing to do with the death
Being wrong is not the same as lying.
The insurer usually has the burden to prove that the insured knowingly gave false information and that it actually mattered to the underwriting decision.
The Suicide Exclusion and the Contestability Period
Most policies also contain a separate suicide exclusion, usually for the first two years.
If the insured takes their own life during that period, the insurer typically returns premiums instead of paying the benefit.
After that period ends, suicide is usually covered like any other cause of death unless the policy lapsed and was reinstated.
Insurers often confuse these two clauses or try to use both at the same time.
When the Contestability Clock Can Restart
Many people do not realize that a lapse in coverage can restart the contestability period.
If:
Premiums are not paid
The policy lapses
And the policy is later reinstated
The insurer may treat the reinstatement as starting a new contestability period for certain issues.
This is another area where insurers often overreach and deny claims improperly.
Why These Investigations Take So Long
Contestability reviews often drag on for months.
During that time, families are:
Waiting for answers
Waiting for money
And often dealing with financial stress
Insurers use this delay strategically. They hope families will give up or accept a reduced payout.
Contestability Denials Are Often Beatable
Many of these denials can be overturned.
Successful challenges often show that:
The misstatement was minor or unintentional
The insured did not know about the condition
The insurer could have discovered the issue before issuing the policy
The issue had nothing to do with the cause of death
Or the insurer did not follow its own rules
In many cases, we recover the full benefit. In others, we at least prevent the insurer from walking away without paying anything.
When You Should Talk to a Life Insurance Lawyer
You should get legal help if:
The claim is being delayed because of a contestability investigation
The claim was denied for alleged misrepresentation
The insurer is demanding years of medical records
The reasoning in the denial feels exaggerated or unfair
Or the insurer is offering only a reduced payout
The Contestability Period Is Not a Free Pass to Deny Claims
Insurance companies are allowed to investigate.
They are not allowed to:
Rewrite application questions
Assume knowledge the insured did not have
Treat innocent mistakes as fraud
Or deny claims based on speculation
Do Not Let Post Claim Underwriting Take Away Your Benefits
Our firm focuses exclusively on denied life insurance claims, including contestability and misrepresentation cases.
We know how often these denials are based on weak theories, hindsight bias, and aggressive claim saving tactics.
We offer free consultations and handle these cases on a contingency basis. You do not pay anything unless we recover money for you.
If your claim is being delayed or denied because of the contestability period, contact us. There is a very real chance the insurance company is wrong.