Life Insurance Basics
What is the life insurance contestability period?
The contestability period is typically the first 2 years of a life insurance policy. During this period, the insurance company can investigate and potentially deny a death claim if the application contained material misrepresentations. After 2 years, the policy is generally incontestable.
Key Points
- Contestability period: typically first 2 years of the policy
- During contestability: company can investigate and deny claims for misrepresentations
- After 2 years: policy is generally incontestable
- Suicide exclusion: most policies exclude suicide during the first 2 years
- Always answer application questions honestly to avoid contestability issues