After how long does a life insurance policy become incontestable?

A life insurance policy becomes incontestable after a period of two years. This means that after this duration, the insurance company cannot dispute the validity of the policy or deny a claim based on misstatements or omissions made by the insured in the application process. This provision is designed to provide certainty and security for policyholders, ensuring that they have a reasonable period within which the insurer can investigate and verify the truthfulness of the information provided. After the two-year contestability period, the insured can feel confident that their beneficiaries will receive the benefits regardless of past inaccuracies, barring instances of fraud.

Other time frames provided in the choices, such as one year, three years, or five years, do not align with the standard two-year period established in Arkansas law, which serves to promote fair practices within the life insurance industry.