Under what circumstances can a life insurance policy be contestable?

A life insurance policy can be contestable primarily due to misrepresentation of material facts during the application process. This means that if a policyholder provides inaccurate or misleading information that could affect the insurer's decision to issue the policy or the terms of coverage, the insurer has the right to contest the policy. This may include failure to disclose pre-existing medical conditions, smoking habits, or other relevant details that could influence underwriting decisions.

The contestability period typically lasts for a specific duration, often two years from the policy's issuance, during which the insurer can investigate and possibly deny a claim if there has been misrepresentation. After this period, the policy generally becomes incontestable, except in cases of fraud.

Other scenarios, such as relocating, reaching a certain age, or the length of time the policy has been in force, do not intrinsically create reasons for contesting a life insurance policy. The focus remains squarely on the accuracy of the information provided during the application process, making misrepresentation of material facts the correct basis for contestability.