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Typically, life insurance policies are incontestable after a specific amount of time, usually one or two years. Following this time period, insurance companies cannot contest the validity of the policy,
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11 votes
11 votes
Typically, life insurance policies are incontestable after a specific amount of time, usually one or two years. Following this time period, insurance companies cannot contest the validity of the policy, unless premiums were not paid. Does this encourage people to hide facts from insurance companies during the two year waiting period? if so, is this ethical?

User Lalit Agarwal
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1 Answer

23 votes
23 votes
Yes a typical incontestability clause specifies that a contract will not be voidable after two or three years due to a misstatement. It is ethical
User Rastio
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