How long may an insurance company contest a life policy after its effective date?

The duration that an insurance company can contest a life insurance policy after its effective date is typically set at two years. This is a standard provision in many jurisdictions to protect policyholders. It allows the insurer a reasonable amount of time to investigate the application and any potential misrepresentation or fraud that may have occurred during the underwriting process.

This two-year contestability period helps to balance the interests of both the insurer and the insured. After the two-year mark, the insurance company generally cannot contest the validity of the policy based on statements made in the application, except in cases of outright fraud or non-payment of premiums. This provision serves to provide policyholders with a sense of security, knowing that their policy will be upheld unless there are significant issues that arise within that initial timeframe.