And is it fairly true that after 2 years they pretty much have to pay out no matter what?
Well, there is a clause in most life insurance policies referring to 2 years the insurance carrier has to determine if the information is accurate, and after that time, they may not be able to deny payment for a death claim based on the information provided on the application.
However, you should always answer all questions truthfully on the application for life insurance.
You may want to review the top 10 life insurance companies, and compare financial ratings and prices from several leading insurers before making a decision about which company and plan meets your family's life insurance needs.