Final answer:
An individual life insurance policy becomes incontestable usually after two years from the issue date, providing security to the policyholder by limiting the insurer's ability to dispute claims.
Step-by-step explanation:
An individual life insurance policy typically becomes incontestable after it has been in force for a certain period, during which the insurance company may contest or challenge a claim under certain circumstances.
An individual life insurance policy becomes incontestable usually after two years from the issue date, providing security to the policyholder by limiting the insurer's ability to dispute claims.
However, once the incontestability period is reached, which is often after two years from the issue date, the insurer's ability to dispute a claim is extremely limited.
The incontestability clause is designed to provide a measure of security to the policyholder, ensuring that their beneficiaries will receive the policy benefits even if there were misstatements or errors in the application as long as the stipulated time has passed.