There are all kinds of clauses involved with life insurance policies. It’s a veritable attorney’s dream (or nightmare) reading through the typical life policy. One very important clause that bares further explanation is the contestability clause. Let’s go through this clause and understand its impact on you as the policy holder as it can be pretty significant. It’s also important to discuss ways to avoid triggering this clause all together during the underwriting and application process. Let’s look a little closer at contestability clauses found in life insurance.

First, a definition of the contestability clause in simple language. Essentially, if the applicant of a life insurance policy misleads, misrepresents, or withholds material information to the life insurance company during the application process, the life insurance company may not have to pay benefits in the event of the insured passing away.

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