Question

Typically, life insurance policies are incontestable after a specific amount of time, usually one or two years. Following this time period, insurance companies cannot contest the validity of the policy, unless premiums were not paid. Does this encourage people to hide facts from insurance companies during the two year waiting period? if so, is this ethical?

Answer 1

Yes a typical incontestability clause specifies that a contract will not be voidable after two or three years due to a misstatement. It is ethical