Tips from a Life Insurance Lawyer: What Beneficiaries Should Know About the Contestability Period
Losing a loved one is hard enough without the added stress of navigating life insurance claims. For many, the shock of a delayed or denied payout during the contestability period can feel like a second loss. If you're a beneficiary trying to understand why a claim is being questioned or what your options are, this guide is for you.
This article explains what the two-year contestability period in life insurance policies means, why insurers may investigate claims during this time, and common reasons for disputes. If you're facing these issues, speaking with a
life insurance lawyer may be essential to understand what steps you can take to protect your rights and move forward with confidence.
What Is the Contestability Period in Life Insurance?
The
contestability period is typically the first two years after a life insurance policy is issued. During this time, the insurance company has the right to investigate and contest a claim if it believes there was misrepresentation or fraud in the application.
Key Facts:
- The period starts from the policy’s effective date.
- It applies regardless of how the policyholder dies.
- Claims filed during this window are not automatically denied, but may be delayed or investigated.
Why Do Insurers Contest Claims?
Life insurance companies use the contestability period to verify the accuracy of the policyholder’s application. If a discrepancy is found, even if unrelated to the cause of death, they may delay or deny the claim.
Common Reasons Insurers May Investigate:
- Omitted medical conditions: Undisclosed diagnoses, symptoms, future medical appointments, medical tests/investigations or treatments.
- Lifestyle misrepresentation: False information about smoking, drug use or risky activities.
- Financial misrepresentation: Underreported income or employment status.
- Incorrect personal details: Age or identity inconsistencies.
Even an honest mistake can result in a denied claim during this period.
What Happens If the Claim Is Challenged?
If an insurer raises concerns during the contestability period, it will usually:
- Request medical records and documents.
- Interview doctors, family members or acquaintances.
- Delay the payout while reviewing the case.
In the event the insurer denies the claim, they must provide a written explanation.
What Can Beneficiaries Do If a Claim Is Denied?
If you receive a denial letter or experience unexplained delays, you have rights. Here's how to respond:
1. Gather Documentation
Collect the following deceased’s information:
- Insurance application
- Medical records
- Correspondence with the insurer
2. Speak With a Life Insurance Claim Lawyer
Consulting a life insurance lawyer can help you:
- Determine if the denial was lawful.
- Respond with supporting evidence.
- File an appeal or start legal proceedings, if necessary.
How Can Aaron Waxman and Associates, P.C. Help?
Navigating the contestability period can be daunting, especially during a time of grief. Aaron Waxman and Associates, P.C. is well versed in handling life insurance claim disputes, including those involving investigations, delays and wrongful denials.
Our team can help:
- Review and challenge claim denials.
- Communicate directly with insurers on your behalf.
- Advocate for your rights to ensure fair treatment under the law.
Our firm provides clear, compassionate legal support for beneficiaries seeking answers and justice.
Conclusion
The contestability period exists to protect insurers from fraud, but it can also create unexpected obstacles for beneficiaries. If you’re dealing with a denied or delayed claim, you’re not alone and you don’t have to face the process without help.
We offer dedicated legal services to ensure your rights are upheld. Don’t let uncertainty keep you from the benefits you deserve.
Contact Aaron Waxman and Associates, P.C. today for a free consultation.
We offer a free initial consultation that can be arranged at a date and time of your choosing and at your convenience.
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- This blog is for informational purposes only and is not meant to substitute legal advice. Please read our disclaimer for further information.
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