How long must a policy be in force for the incontestable clause to apply?

The incontestable clause in a life insurance policy generally applies after the policy has been in force for a period of two years. This clause protects the policyholder by ensuring that the insurer cannot contest the validity of the policy or deny a claim due to misstatements after this time frame. It is designed to provide stability and assurance to policyholders that once a policy has been in force for two years, the insurer has limited grounds to dispute the contract based on issues such as misrepresentation or fraud.

The rationale behind the two-year period is to allow insurers enough time to review the application thoroughly and assess the risk before fully committing to the policy. After this period, policyholders can have confidence in the continuation of their coverage without the fear of future disputes regarding their eligibility or information provided at the time of application.