Contestability Period

Contestability Period The contestability period lasts for two years after your life insurance policy goes in force. When the premium for an insurance policy has been paid and the policyholder is receiving insurance coverage and allows the insurer to review your coverage for misrepresentations during the application process. It is a period in a life insurance policy. If you die within the first two years of coverage, the insurance company can contest paying out death benefits. If it is discovered that the policyholder lied on the application or failed to disclose important facts, the insurance company can invalidate the policy. Common in guaranteed issue and simplified issue policies and also when death is by suicide. It should be noted the contestability period is one to two years after your life insurance policy goes into effect when the life insurance company is allowed to review your coverage for anything you misrepresented during the application process. Customers usually breach the contract by; lying about one's medical condition, past health status, dangerous job profile, unhealthy habits, drug abuse, and other addictions are considered as discrepancies. In life insurance policies, an incontestability clause protects the policyholder and prevents the policy provider from tampering with any part of the insurance coverage based on a mistranslation or misstatements by the insured (policy holder) after a period of time. What happens after contestability period is When the period comes to an ends, life insurance coverage is usually considered incontestable. This means your beneficiary will usually receive the coverage amount as long as the coverage was in force. Some policies have exclusions, or situations in which a benefit may not be paid. #benewinsurance #insurtech #inclusiveinsurance #insurance #reinsurance #takaful