Contestable Clause — the portion of a life insurance policy setting forth the conditions under which an insurer may contest or void the policy.

What does contestability mean in insurance?

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. The contestability period exists to protect the life insurance company from fraud.

Who is protected under the in contestability clause?

The contestability period is a clause in a life insurance policy according to which if the policyholder expires within two years of purchasing the policy, the insurance company can contest or question the claim raised by his/her beneficiaries.