How long does the incontestability clause last after the issue date of a policy?

The incontestability clause is a crucial provision in life insurance policies that limits the insurance company's ability to contest the validity of a policy after a specified period. This clause typically lasts for two years from the policy’s issue date.

During this period, the insurer can investigate and potentially deny claims based on misrepresentation or fraud. However, once this two-year timeframe has passed, the insurer generally cannot contest the validity of the policy based on information that was disclosed during the application process. This protects policyholders by assuring them that as long as they have been honest in their application, their coverage will remain in effect.

Understanding this clause is essential for both agents and policyholders, as it provides a level of security reassurance for the insured, knowing that their insurance will not be easily revoked due to earlier discrepancies or misunderstandings, provided those issues do not involve fraudulent activity.