How long is the contestability period for life insurance policies in Indiana?

The contestability period for life insurance policies in Indiana is two years. This period is significant because it allows insurers to investigate claims that are made during the first two years after the policy is issued. If the insurer finds any material misstatements or omissions in the application for insurance, they have the right to contest the payment of a death benefit.

The two-year timeline is designed to balance the interests of policyholders and insurers, providing a reasonable window for insurers to identify fraudulent or misleading information while ensuring that individuals are not indefinitely at risk of losing their coverage simply due to small discrepancies. After this period has passed, the policy typically becomes incontestable, meaning that the insurer can no longer deny a claim on the basis of misstatements made in the application, except in cases of outright fraud.

This framework aligns with general practices across many states, which often set similar timeframes for contestability, indicating broad industry standards aimed at consumer protection and fair underwriting practices.