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When Does the Incontestable Clause Not Apply?

Marcus Vance • • 7 min read
When Does the Incontestable Clause Not Apply?

Three Common Exceptions to the Incontestability Clause
In most states, if the insured person misstates age or gender when applying for life insurance, the insurance company may not void the policy, but it can adjust death benefits to reflect the policyholder's true age.

Under what circumstances can an insurer contest a life insurance policy according to the incontestable clause?

Under what circumstances can an insurer contest a life insurance policy according to the Incontestable clause? Intentional and material misrepresentations submitted on the application can be contested for a specified period of time under the Incontestable clause.

What are the disadvantages of an Incontestability clause?

The clause is a strong protection for the insured but the downside is that it does not protect the insured from fraud penetrated by the insured. For example, if an insured lies to conceal facts in an insurance policy, the coverage can be withdrawn and all benefits canceled.

Marcus Vance
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Marcus Vance

Marcus Vance is a cybersecurity auditor and technology writer dedicated to educating the public about online safety, data privacy regulations, enterprise security, and emerging cyber threats.