Some people purchase life insurance in order to help their family members, or other loved ones to receive some money after their passing. Generally, a life insurance is paid. However, there are situations when some companies may refuse to pay the claim.
This does not happen often. There are times, however, under some unusual situations where a life insurance company may refuse to honor a claim. This can happen as a result of a person disappearing under strange circumstances. Also, a company might refuse a claim if they suspect some type of fraud was involved. In these situations it still does not mean the company will not eventually pay the total claim. It means that the claim might be withheld until the fraud, disappearance, or whatever is resolved.