All life insurance has a contestability period. The duration of the contestability period is controlled at the state level, so there is a chance it could change.
Once your policy is issued, the contestability period begins. It also re-starts if you lapse your policy and then reinstate it back.
It is not very common to have a life insurance claim denied after the contestability period, but if you have misrepresented yourself to the insurance company, it is possible. If your life insurance policy has an incontestability clause, this clause typically removes the ability for an insurance company to deny a claim.
No. Contestability is not intended to punish policyholders for errors that can be easily rectified. Its purpose is to identify individuals who intentionally provide incorrect information to avoid higher premiums. When purchasing your policy, it is crucial to be open and forthcoming to guarantee that your loved ones can receive the full death benefit upon your passing.
