Incontestability Clause

Definition

• A clause used in many life insurance policies that guarantees that after a specified amount of time (usually 2-3 years) the insurer no longer has the right to void the policy due to an accidental misstatement made by the insured. Deliberate concealment and outright lies are not protected by the incontestability clause.

Synonyms
confirmable, fine print, real, definite, certainty clause, verifiable, set, sound, clear, true

Related Terms and Acronyms

• Lapse Ratio — Definition,
  • A ratio that compares how many life insurance policies have lapsed from the beginning year to the end.
• Lapsed Policy — Definition,
  • A policy that is no long in effect due to missed payments, inaction or its term ending.
• Ultimate Mortality Table — Definition,
  • A mortality table that does not include information from people who have been approved for life insurance recently.