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If death occurs within first 2 policy years, a life insurance company can deny a death claim if they can prove that the insured lied on the application and that the lie was material to their decision in taking on the risk. After policy has been in force for 2 years, the life company must pay the claim, even if the insured did lie. Never tell a lie to a life insurance company.

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Q: Can a whole life insurance provider refuse to pay if they find they were lead to believe the insured did not smoke?
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