What can void a life insurance policy or cause a claim to be denied?

This answer is about Life insurance.

The contestability period

Most life insurance policies include a contestability clause — typically the first two years the policy is in force (confirm state and insurer specifics). During that window, the insurer can investigate the application if the insured dies and can rescind coverage for material misrepresentations, refunding premiums instead of paying the death benefit.

Common reasons for claim denial or reduction

• Material misrepresentation on the application (health history, tobacco use, occupation, hazardous hobbies, income).
• Suicide within the contract's suicide exclusion period (commonly the first two years — confirm).
• Non-payment of premiums leading to lapse.
• Fraud, including impersonation on the application or medical exam.
• Death from a specifically excluded cause (rare, but some policies exclude certain hazards).

Incontestability after the contestability period

Once the contestability period ends, insurers generally cannot rescind a policy for innocent misstatements. Fraudulent misrepresentation may still be actionable in some states, but the bar is high.

Lapse and reinstatement

If you miss a premium and the grace period expires, the policy lapses. Many policies can be reinstated within a set window (often up to 3–5 years, confirm) if you pay back premiums with interest and requalify medically.

What to do if a claim is denied

• Request the denial in writing with the specific reason and policy language cited.
• Request the underwriting file and any evidence relied on.
• Contact your state department of insurance to file a complaint if you believe the denial is improper.
• Consult an attorney experienced in life insurance claims for complex cases.