What is the incontestability period for a life insurance policy?

The incontestability period for a life insurance policy is typically a time frame established by law during which an insurer cannot contest or deny a claim based on misstatements or omissions made by the policyholder in the application. In most states, this period is set at two years.

After the two-year mark, the insurer loses the right to dispute the validity of the policy based on the information provided at the time of application, provided the premiums are being paid and the policy is in force. This protects the beneficiaries and encourages insurers to conduct thorough underwriting before issuing the policy.

Establishing a two-year period strikes a balance between allowing insurers sufficient time to investigate legitimate concerns and providing policyholders with the assurance that their life insurance policy remains valid after this period, promoting trust in the insurance system.