Life Insurance Basics
What is the life insurance incontestability clause?
The incontestability clause in a life insurance policy states that after the policy has been in force for 2 years, the insurance company cannot contest the validity of the policy based on misrepresentations in the application. The incontestability clause protects your beneficiaries from having a claim denied after 2 years.
Key Points
- Incontestability clause: after 2 years, company cannot contest the policy
- Protects beneficiaries from claim denial after 2 years
- Does not protect against fraud — company can still deny fraudulent claims
- Suicide exclusion: typically applies for first 2 years
- Always answer application questions honestly