When Do Life Insurance Policies Not Pay? 
If a life insurance policy is put in force correctly , and if the insured person does not commit suicide in the first two years after the policy goes into effect , the policy will pay . Policies in which the client honestly answers the questions on the application with a good agent , will pay . If the insured person omits or lies about a significant health detail that was asked about on the application or during underwriting , the policy could be contested if death of the insured person occurred within two years after purchasing the policy . If a policy is contested , there is still a chance it might pay . Suicide during the first two years that the policy is in effect is an exclusion for which the policy will not pay . 