If the insured died within two years of buying the policy—or after a lapse and reinstatement—insurance companies have the right to investigate the application for misstatements. But here’s the trick: the cause of death doesn’t have to be related to what was left off the application. Even if your loved one died in a freak accident, the insurer may still dig through medical records to uncover something—anything—they can use to rescind the policy.
Missed a heart condition on the application? Failed to disclose a smoking habit? Understated your weight? Mentioned scuba diving but not that you also skydive? Those “errors” give the insurer an opening. It doesn’t matter if the policyholder died in a car crash or house fire—they’ll use the omission to claim the contract was invalid from day one. If you have a Colorado life insurance policy dispute call us.
Real Case: Denied After Death by Stroke—Because of a Decade-Old Back Injury
One family came to us after their father died from a stroke just 11 months into his policy. The insurer flagged the claim, demanded every medical file he’d ever had, and eventually found that he failed to list a chiropractor visit for back pain from 10 years prior. That visit included a note about “occasional dizziness”—which the insurer twisted into a “known neurological concern” and denied the entire $750,000 benefit. We sued. Fast.
This kind of post-death nitpicking is called post-claim underwriting—and it’s a weapon insurers use routinely during the contestability period. They accept the risk when writing the policy but wait until after death to do the real investigation, hoping to find a way out.
What the Contestability Investigation Really Looks Like
Once flagged, the insurer launches a deep-dive review. They’ll request:
Full medical records from doctors, clinics, and hospitals
Prescription histories from pharmacies
The original application and all supporting forms
Interviews with doctors, relatives, and sometimes even employers
They’re not just checking facts. They’re looking for inconsistencies. A simple oversight—like listing a medication without the matching diagnosis—can become grounds for denial.
What Happens After the Review?
There are typically three outcomes:
Full Payout Approved – If they find no material misrepresentation, they’ll pay the claim—sometimes with added interest.
Reduced Benefit – If they claim the insured should have been rated a higher risk, they may offer a lower payout based on what a higher-risk policy would have paid.
Total Denial – If they believe the policy would have been denied outright, they cancel it and refund only the premiums. No death benefit.
That’s how insurers keep your money—after collecting it for years.
Beware: Reinstating a Policy Restarts the Clock
Even if the original policy is years old, a lapse and reinstatement resets the contestability period. If your loved one missed a payment, reinstated the policy, and died within two years of doing so, the insurer gets another shot to dig for disqualifying information.
We’ve seen cases where the insurer was fine with the reinstatement application—until the insured passed away, and suddenly every line was under a microscope.
How to Protect Yourself During the Contestability Period
Disclose everything on the application. Even minor conditions or occasional treatments.
Keep records of what was submitted and any communication during the application process.
If a death occurs early, anticipate scrutiny and prepare documentation immediately.
Don’t speak to the insurer alone. The moment you’re notified of an investigation, contact a life insurance attorney.
What to Do If You’re Already in a Contestability Dispute
Time is not on your side. Once the insurer begins the review, they’re not looking for reasons to pay—they’re looking for reasons to avoid paying. You need someone in your corner who understands how these games are played.
Our firm handles these cases every day. We challenge vague denials, expose post-claim underwriting, and force insurers to follow the law. If needed, we take them to court. And we don’t charge a fee unless we recover money for you.