How Long Do Most Life Insurance Contestability Periods Last And Why?

Most life insurance contracts have a 2-year contestability period which can be found in the policy provisions within the policy. This clause allows an insurance company to deny the claim if there was a misrepresentation regarding any of the information provided on the application for insurance, even if the misrepresentation was due to an oversight or error. After two years have elapsed from the issuance of the policy, the misrepresentation must be fraudulent, which means that the erroneous information was provided either deliberately or recklessly.