Incontestable Clause

What Does Incontestable Clause Mean?

An incontestability clause in a life insurance policy prevents the insurer from contesting any statements made in the application after a specified period, typically two years.

Insuranceopedia Explains Incontestable Clause

The incontestability clause prevents the insurer from revoking coverage due to alleged misstatements made by the insured. How an insurer applies this clause varies between carriers, and it is one factor worth comparing when reviewing the best life insurance companies.

Insurers do not tolerate deception, and this is no exception. The clause is designed to protect policyholders in the event of an innocent mistake or misrepresentation on the application. However, it does not prevent the insurer from terminating the policy if the applicant intentionally committed fraud during the application process. This matters most for buyers considering no medical exam life insurance, since these policies depend almost entirely on the accuracy of the answers given on the application.