Contestability Period

The window, usually two years, during which a life insurer can deny claims over application misstatements.

Overview

During this period the insurer can investigate and deny a claim for material misrepresentation, even unintentional ones such as an undisclosed illness or smoking history. After it ends, claims must generally be paid regardless of application errors, except for fraud in some jurisdictions and nonpayment of premium. The clause keeps prices low by deterring applicants from hiding known risks, since insurers cannot fully verify health at issue. Misstatement of age typically adjusts the benefit rather than voiding coverage. A related suicide clause, often coterminous, denies benefits for self inflicted death in the first two years and returns premiums instead, which is why accurate disclosure at application matters more than any later paperwork.