Contestability Period

The contestability period is a window — typically the first two years a life insurance policy is in force — during which the insurer may investigate claims and rescind the policy if it discovers material misrepresentation or fraud on the application. If the insured dies during this period, the carrier can delay the death benefit payment while it reviews the application for inaccuracies. If misrepresentation is found (e.g., undisclosed health conditions or tobacco use), the carrier may deny the claim or reduce the benefit to what the correct premium would have purchased. After the contestability period, the policy becomes incontestable except in cases of fraud.