Contestability period laws govern the time window, typically the first two years after a life insurance policy is issued, during which an insurer may investigate and contest claims based on material misrepresentations in the application. Within the contestable period, a carrier can rescind coverage or adjust benefits if it discovers undisclosed health conditions, risky activities, or other factors that would have changed underwriting decisions. After the contestability period expires, most policies become incontestable except for limited reasons like nonpayment of premium or fraud. These laws balance protecting honest policyholders with allowing insurers to guard against intentional misstatements.

Advisors explain contestability period laws when discussing the importance of truthful, complete applications and the risks of omitting information. When a death occurs during the contestable period, carriers routinely review medical records and application answers before paying claims. Advisors may help families understand why additional questions are being asked and why delays occur. They also emphasize that accurate disclosure up front reduces the chance of a claim dispute later. Understanding contestability period laws helps advisors promote full transparency and manage expectations for early-policy death claims.