What is the definition of Contestable Period?

The Contestable Period refers to the period where the insurance company still has the right to cancel or withdraw an insurance policy if it is discovered that there was misrepresentation of key facts. These key facts would have caused the company to refuse or deny the application. The Contestable Period also gives the insurance company the right to deny any claims in this case. For example, if an insured person dies because of a critical illness that he concealed at the time he was applying for insurance and he dies within the contestable period, the insurance company can contest the claim and refuse to pay it.

There may also be special provisions, such as a suicide clause, where the insurance policy will not pay for death benefits if the insured person commits suicide within the contestable period. The contestable period is usually two years but there are states that have a one-year suicide clause.

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