What is the incontestability clause in a life insurance policy?

The incontestability clause is a provision in all life insurance policies that limits the carrier's ability to contest or rescind a policy after a specified period—typically two years. In Nevada, this period is governed by NRS 688A and is standard across all life insurance contracts.

During the first two years after policy issuance, the carrier may investigate the accuracy of your application if you pass away and potentially deny the claim if material misrepresentations are discovered. After two years, the policy is generally incontestable—the carrier cannot rescind coverage based on application misrepresentations, even if later discovered.

Important nuances: the incontestability clause does not protect against intentional fraud, and some policies have specific exclusions (like suicide within the first two years) that are separate from the incontestability provision. Reinstatement after lapse restarts the contestability clock for the reinstated coverage.

The practical implication: honesty on your application is essential, as any misrepresentation can be investigated during the two-year window. After that window, you have strong protection that the policy will pay claims as long as premiums are current.

Nevada applicants should disclose all health history accurately. Agents in our network understand how to navigate application disclosures appropriately to maximize approval likelihood while ensuring accurate representation.