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Writer's pictureAbhilasha Sharma

non-contestability clause what it is how it works sample

Updated: Feb 19

What is a non-contestability clause?

A "non-contestability clause" is a provision often found in life insurance policies. This clause limits the insurer's ability to contest the validity of the policy or deny a claim based on the insured's statements or representations after a specified period has elapsed since the policy's effective date. The primary purpose of a non-contestability clause is to provide certainty and protection to the policyholder and beneficiaries after a certain time, usually one to two years from the policy's inception.


How a Non-Contestability Clause Works?

  1. Inclusion in Insurance Policy:

  • The non-contestability clause is included as a provision in a life insurance policy. This clause is a contractual agreement between the insurer and the policyholder.

  1. Contestability Period:

  • The clause defines a specific contestability period, which is typically the first one or two years of the policy's existence. During this period, the insurer retains the right to contest the policy based on material misrepresentations or omissions made by the policyholder in the application.

  1. Post-Contestability Period:

  • After the contestability period expires, the insurer generally waives the right to contest the policy based on any misrepresentations made by the policyholder, regardless of their materiality. This provides greater certainty to the policyholder and beneficiaries.

  1. Exceptions:

  • Non-contestability clauses may still allow certain exceptions even after the contestability period, such as cases involving fraud or intentional deception by the policyholder.


Sample Non-Contestability Clause:

"Non-Contestability Clause: This policy shall be incontestable by the insurer after it has been in force for a period of two years from the policy date, except for non-payment of premiums. No statement made by the insured shall be used to contest the validity of this policy after the said two-year period."

In this example:

  • The contestability period is two years from the policy date.

  • The non-contestability clause ensures that, after the specified period, the insurer cannot contest the policy's validity based on statements made by the insured.

  • There is an exception for non-payment of premiums, which is a common provision in non-contestability clauses.

Non-contestability clauses are intended to provide peace of mind to policyholders and beneficiaries by creating a window of time after which the insurer cannot challenge the policy based on the insured's statements. It encourages insurers to thoroughly underwrite policies during the initial application process and reduces the uncertainty for policyholders in the long run. As with any contractual provision, the specific language and terms may vary, and individuals should carefully review their life insurance policies to understand the details of the non-contestability clause.

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