A Wall Street Journal article explains the life insurance contestability period, the first two years of a policy when insurers may review application details for accuracy. It features Kristin Cook of National Life Group, who notes that
“The two-year contestability period works as a check and balance…” to discourage misrepresentation.
Agents can use this article in client conversations to clearly explain how policies work early on, reinforce the importance of accurate applications, and build trust by addressing common concerns about claims being paid.
Talking points for agents:
- The contestability period is standard across the industry and helps protect the integrity of policies.
- Being honest and thorough on the application helps ensure claims are paid smoothly.
- After the contestability period, policies are generally more secure from review.
- This process ultimately protects both the client and the insurer.
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