What is the‘contestable period’ in insurance policy?
- The life insurance contestable period is a short window in which insurance companies can investigate and deny claims.
- The period is two years in most states and one year in others, and it begins as soon as a policy goes into effect.
- If you die within the contestable period, the life insurance company can investigate whether you gave accurate information on your life insurance application. The company can deny paying the death benefit if you lied — even if the cause of death has nothing to do with misrepresentation on your application.