Are you in the process of purchasing a life insurance policy? We know you might have legal questions about how the life insurance process works and we can help at Saxton Law Firm in Kansas City, MO. A common question that we hear at Saxton Law Firm is – what is the contestability period for a life insurance policy? We can help answer your legal questions and provide you with the information that you need.
How Long Is the Life Insurance Contestability Period?
The contestability period on the life insurance is in place to protect the provider and gives the insurer 2 years to review the coverage and the policy for any misrepresentations that were intentionally included in the policy during the application process. This period protects the insurer from fraud and gives the provider the chance to discover any overt lies about individual health or lifestyle. The contestability period will restart if your policy lapses or you get a brand-new policy.
Misrepresentations found during the contestability period do not have to be related to the cause of death – but may uncover a history of drug or alcohol abuse that was not disclosed – which can result in a denied life insurance claim. Lies and misrepresentations discovered in this period can result in denied claims, policy cancellations or reduced benefits. If the policy holder passes away during this period, the beneficiary can still file a claim and receive a payout, but the provider can still review the policy for misrepresentations.
READ MORE: Do I Need a Life Insurance Attorney for a Denied Claim?
What Happens If You Lie on a Life Insurance Application?
When it comes to providing financial protection for your family after you are gone, life insurance is an important step to take and a few applicants can be tempted to lie on the life insurance application to get better premiums. With that said, many individuals want to know what happens if you lie on an insurance application. The contestability period is used by insurance providers to determine if any of the information on an application is misrepresented and many insurance policies require blood and urine testing during the process – which is compared to a report provided by the Medical Information Bureau that includes past surgical and medical history.
If the insurance provider discovers that information was misrepresented or lied about on the insurance application, you can be subject to a canceled policy even after the contestability period and it will be noted on your Medical Information Bureau report, which can prevent you from getting future policies. Keep in mind – the contestability period is in place to prevent insurance applicants from lying on an application and if you forget any details or information, it can be corrected to prevent any issues.
READ MORE: What Are the Different Types of Life Insurance Policies?
If you have questions about your insurance policy like – what is the contestability period on your life insurance policy? We can help answer your questions at Saxton Law Firm and if you have had an insurance claim denied, we are ready to help you get the insurance payout you deserve. Contact Saxton Law Firm for more information and a FREE case review!