How long after its effective date will an individual life insurance policy become incontestable?

• A. One year
• B. Six months
• C. Three years
• D. Two years

Answer: (D)

Incontestability happens after a defined period of the policy being in force. For an individual life insurance policy, that period is two years from its effective date. After two years, the insurer generally cannot challenge the validity of the policy or its claim based on statements made in the application. This provides protection to the insured, since coverage is not at constant risk of being voided years later due to misstatements.

There are typical exceptions still in play, such as nonpayment of premiums and fraud, but the two-year mark is the point at which the policy becomes incontestable for the usual statements on the application.