How Does the Suicide/Contestability Clause Work?

The Suicide/Contestability Clause applies during the first two years of a term life insurance policy, and states that, during this time period, a company has the right to verify the information submitted in the application/underwriting process. If any information is found to be untrue or omitted and would have caused the company to decline the application, the company reserves the right to deny the claim. In this case, no death benefit would be paid and the company would refund the premiums paid.

This clause also states that if the cause of death is suicide, the beneficiary will not receive the funds of the policy – this still only applies during the first two years. After that timeframe has passed, this rule no longer applies.

View more answers to frequently asked term life insurance questions.