The Incontestability Of Life Insurance Policies After Two Years

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Incontestability Of Life Insurance. Up until a life insurance policy is in force for two years it may be contested by the life insurance company. The incontestability period may vary depending on the life insurance company. Even though an inspection report is obtained and in some cases a medical examination is done the company depends a great deal on the answers given on the application when deciding whether or not to issue a policy but...

If an applicant fails to disclose information that would cause a policy not to be issued or to be rated the policy may be withdrawn or a claim may be denied...that is as long as the policy is still within the contestable period.

After two years have passed with the policy in force the life insurance company no longer has the right to contest the policy. The incontestability of the policy therefore gives the policy owner all the rights as stated in the contract itself. Claims will be paid and the policy can no longer be withdrawn even if a misstatement in the application is discovered.

• Suicide Clause

  If a policy owner dies by suicide within one year of the date of issue of the life insurance policy the claim will be contested and the benefits will be limited to the premiums paid. The period may vary from company to company. After the year has passed if the owner should die by suicide the claim would be paid as the policy has now entered the incontestability period as far as suicide is concerned.