By OLPolicy | Licensed Insurance Specialists | (866) 757-5350
You did everything right. You compared policies. You picked the best coverage for your budget. You filled out the application honestly. And now your family is protected.
Or are they?
There’s a two-year window at the start of every life insurance policy – including final expense insurance – that most seniors never hear about until it’s too late. It’s called the contestability period. And if your family ever has to file a claim during those first two years, they need to understand exactly what it means.
This guide explains How the Contestability Period Affects Final Expense Insurance. No legal jargon. No confusing fine print. Just a clear, honest answer to every question you might have – so your family is never caught off guard.
| 💡 Quick Answer
The contestability period is a two-year window after your policy starts during which the insurance company has the legal right to review your application if you pass away. If they find that you lied or left out important health information, they can reduce or deny the claim. If you were completely honest on your application – which is all you need to be – the contestability period is nothing to worry about. |
When an insurance company approves your final expense application, they’re trusting that everything you told them is true. They didn’t run a full medical exam. They didn’t pull your complete medical records. They asked you a handful of health questions – and they took your word for it.
The contestability period is the insurance company’s safety net. It’s a two-year window during which, if you pass away, they have the legal right to go back and double-check your application.
Think of it this way: the insurer is saying, “We trusted you when we approved this policy. If you pass away in the first two years, we’re going to verify that our trust was earned before we release the money.”
Every life insurance policy in the United States – by law – includes a contestability period of no more than two years. After that window closes, the policy becomes incontestable. That means no matter what happens, no matter what might be discovered, the insurer must pay the valid claim. No exceptions.
Here’s how the contestability period fits into the overall life of your policy:
| PHASE 1
Month 0 – Day 1 Policy Issued Your application is approved. Your policy is active. But the contestability clock has just started ticking. |
PHASE 2
Months 1 – 24 Contestability Window If you pass away during this period, the insurer can review your application for misrepresentation before paying. |
PHASE 3
Month 25 onward Incontestable – Forever The policy is now incontestable. No review. No delays. Your family gets the full benefit, no questions asked. |
| ✅ The Good News for Honest Applicants
If you answered every health question truthfully – even if you have health conditions – the contestability period is just a formality. A review simply confirms your honesty and the claim is paid. The contestability period only becomes a problem when someone deliberately hides or misrepresents their health history. |
Not every death during the contestability period automatically leads to a lengthy investigation. But when a claim is filed within the first two years, most carriers will conduct at least a basic review. Here’s what they look at:
| 1 | They Request Your Medical Records
The insurer contacts your physicians and healthcare providers to obtain your medical history. They’re comparing what you disclosed on your application against what your records actually show. |
| 2 | They Review Your Application Answers
Every question you answered is checked against your medical records. They’re looking for conditions, diagnoses, hospitalizations or medications that were present before you applied – and that you did not disclose. |
| 3 | They Determine the Cause of Death
If the death was accidental – a car accident, a fall, drowning – most insurers pay the claim immediately regardless of contestability. If death was from natural or illness-related causes, the review continues. |
| 4 | They Make a Decision
If no misrepresentation is found, the claim is approved and the full benefit is paid. If a material misrepresentation is discovered – something significant that would have changed the approval decision – they can reduce or deny the benefit. |
This is the question that matters most – because not every omission or error is treated the same way.
There are two types of misrepresentation in insurance:
A material misrepresentation is when you intentionally hide or lie about a health condition that would have significantly affected the insurer’s decision to approve your policy or set your premium. This is what insurance companies are actually looking for.
Examples of material misrepresentation:
Not everything that doesn’t match your records is treated as fraud. Insurance companies understand that people forget things, misremember dates or simply don’t know the technical name of every condition they’ve had. Minor, innocent errors are generally not grounds for denying a claim.
Examples that typically don’t trigger a denial:
| ⚠️ The Rule of Materiality
Courts and insurance regulators use a test of materiality – would this undisclosed information have changed the insurer’s decision to offer coverage or the premium they charged? If the answer is yes, it’s material. If the undisclosed detail wouldn’t have changed anything, it’s usually not grounds for denial. When in doubt, always disclose. |
To make this completely clear, here’s every major scenario and the likely outcome for your family. This is the table most insurance websites won’t give you:
| Scenario | Contestability Active? | Misrepresentation Found? | Outcome for Family |
| Honest application, dies Year 1 (natural cause) | Yes | No | Full benefit paid ✅ |
| Honest application, dies Year 1 (accident) | Yes | N/A | Full benefit paid ✅ |
| Honest application, dies after Year 2 | No | N/A | Full benefit paid ✅ |
| Omitted condition, dies Year 1 (natural cause) | Yes | Yes | Claim denied or reduced ❌ |
| Omitted condition, dies Year 1 (accident) | Yes | N/A | Full benefit paid ✅ |
| Omitted condition, dies after Year 2 | No | N/A | Full benefit paid ✅ |
| Honest application, dies any time after Year 2 | No | N/A | Full benefit paid ✅ |
The pattern is clear: honesty protects your family in every scenario. And once the two-year window closes, the policy is permanently incontestable – your family is protected regardless of anything the insurer might discover later.
Here’s something many people don’t realize: the contestability period generally applies to natural causes of death – illness, disease organ failure and similar health-related deaths.
If the insured person dies in a covered accident during the contestability period – a car accident, a fall, an accidental drowning – most insurers pay the full death benefit immediately without a contestability review.
Why? Because accidents are not related to health history. There’s no connection between a pre-existing condition and being struck by a car. The insurer’s concern – verifying health disclosures – simply doesn’t apply to accidental death.
| 💡 Check Your Policy’s Definition of ‘Accidental Death’
Not all accidents are covered the same way. Most policies exclude deaths from high-risk activities, intoxication, self-inflicted injuries or criminal activity. Always read your policy’s definition of accidental death – or ask an OLPolicy specialist to walk you through your specific policy’s terms. |
Final expense insurance is simplified issue – meaning the insurer approved your policy based only on your answers to health questions, not a full medical exam. This actually makes the contestability review more straightforward.
Here’s what that means in practice:
The insurer isn’t looking for anything and everything. They’re checking whether your answers to those specific health questions were truthful. The scope is limited to what was asked – not your entire medical history from birth.
Final expense health questions are written to screen out the most serious, high-risk conditions – terminal illness, active cancer, HIV, recent major cardiac events. If none of those applied to you and you said so honestly, there’s nothing for the insurer to find.
The vast majority of final expense claims – even those filed during the contestability period – are paid quickly and without dispute. Genuinely dishonest applications are rare. When they do occur, they’re usually cases of significant, documented conditions that were clearly and intentionally omitted.
| Aspect | Traditional Life Insurance | Final Expense Insurance |
| Underwriting type | Full medical exam + blood work + records | Simplified – health questions only |
| Contestability period | 2 years (standard) | 2 years (standard) |
| What gets reviewed | Full medical history | Answers to specific application questions |
| Claims most often denied for | Major health condition non-disclosure | Same – but scope is narrower |
| After 2 years | Incontestable – full benefit always paid | Incontestable – full benefit always paid |
Let’s say the worst happens. A family member files a claim during the contestability period and the insurer notifies them of a review. What now?
The insurer opening a review does not mean the claim will be denied. The vast majority of contested reviews end with the claim being paid in full once the review confirms no material misrepresentation. A review is a process – not a verdict.
The beneficiary should respond promptly to all requests for information and documentation. Delays in providing requested materials can slow the process significantly. Providing everything quickly keeps the timeline as short as possible.
If the claim is denied or reduced, the insurer must provide a written explanation stating specifically what misrepresentation they found and why it was material. This explanation is the starting point for any appeal.
Every state has a process for appealing insurance claim denials. If the family believes the denial was unjust – especially if the applicant answered honestly to the best of their knowledge – they have the right to appeal. Many denials are overturned on appeal, particularly when the “misrepresentation” was an innocent omission or a minor error.
Each state has an insurance regulatory department that oversees claim disputes. Filing a complaint with the state insurance commissioner is free, puts pressure on the insurer to justify their denial and often leads to a faster resolution.
| ✅ OLPolicy Is Here If You Need Help
If your family encounters any difficulty with a contestability review or claim, call OLPolicy at (866) 757-5350. We work with the carriers in our network and can help you understand your rights, navigate the appeals process and connect you with the right resources. |
| Want a Policy That Protects Your Family From Day One?
OLPolicy’s licensed specialists help you apply honestly and choose the right policy – so your family never has to worry about a denied claim. 📞 Call OLPolicy: (866) 757-5350 |
Everything we’ve covered leads to this – the practical steps you can take right now to ensure the contestability period never becomes an issue for the people you love.
| 1 | Answer Every Health Question Completely and Honestly
This is the single most important thing. Every question asked on your application deserves a full, honest answer. If you’re unsure whether something is relevant – ask your agent. It is far better to disclose too much than too little. An honest answer that leads to a graded benefit policy is infinitely better than a dishonest answer that leads to a denied claim. |
| 2 | Work With a Licensed Agent Who Asks the Right Questions
A good agent – like the specialists at OLPolicy – will walk through every health question with you carefully and make sure you understand what’s being asked. We’ve seen claims denied because an applicant didn’t understand what ‘congestive heart failure’ meant on a form. We make sure you never have that problem. |
| 3 | Choose the Right Policy Type for Your Health History
If you have serious health conditions, the honest path is a graded benefit or guaranteed issue policy – not trying to squeeze into a level benefit policy through omission. The right policy type based on your real health history is the policy that will actually pay when your family needs it. |
| 4 | Tell Your Beneficiary Where the Policy Is and How to File
Your family needs to know the policy exists, the carrier’s name and claims number and your policy number. A claim filed promptly with complete documentation is processed faster and with less friction – even during the contestability period. |
| 5 | Keep Paying Your Premiums
A lapsed policy cannot be contested – or claimed. Keeping your premium current ensures your coverage is active and your family’s protection is real. |
Harold, 71, applied for a $15,000 final expense policy and answered all health questions honestly – including disclosing his Type 2 diabetes and high blood pressure. He was approved for a level benefit policy. Eight months later, Harold suffered a fatal stroke.
His daughter filed the claim. The insurer opened a contestability review, requested Harold’s medical records and spent two weeks reviewing his application. What they found was exactly what Harold had disclosed. The claim was approved in full – $15,000 paid to his daughter within 30 days of filing. The contestability review was a formality.
Elaine, 68, had been diagnosed with stage 2 colon cancer six months before applying for final expense insurance. When the application asked whether she had been diagnosed with cancer in the past five years, she answered “no” – hoping it wouldn’t matter. She was approved, paid premiums for 14 months, then passed away from complications of her cancer.
Her son filed the claim. The insurer’s review uncovered her diagnosis – documented in physician records dated before her application. The claim was denied. Her son received only a refund of the 14 months of premiums she had paid. The family was left without the protection Elaine thought she had purchased. A graded benefit policy – which would have been available to Elaine given her diagnosis – would have refunded her premiums plus interest. The omission cost her family everything.
Robert, 74, had a complicated health history – COPD, a heart attack three years prior and mild kidney disease. He was honest about all of it and qualified only for a guaranteed issue policy with a two-year graded benefit period. He was frustrated by the waiting period but accepted it.
Robert passed away peacefully 26 months after his policy started – just two months after his contestability period closed. His daughter filed the claim. There was no review. No investigation. The insurer paid the full $10,000 death benefit within 21 days. Robert’s honesty – and his patience – meant his daughter never had to fight for a dollar.
| ❌ MYTH: The insurance company investigates every death during the contestability period.
✅ TRUTH: Many insurers conduct a basic review on deaths within the first two years, but not all do a full investigation. Straightforward claims from obviously honest applicants are often approved without extensive inquiry. The review is most rigorous when red flags are present. |
| ❌ MYTH: If you die during the contestability period, your family gets nothing.
✅ TRUTH: Even if a material misrepresentation is found, the insurer typically refunds all premiums paid – your family doesn’t walk away empty-handed. And if you were honest, your family receives the full benefit regardless of when you pass away. |
| ❌ MYTH: Once the two years pass, you can never be investigated.
✅ TRUTH: Correct – but important to understand: the policy being incontestable means the insurer cannot deny a valid claim, not that fraud is unpunishable. Deliberate insurance fraud can still have legal consequences, though the benefit itself cannot be withheld after the contestability period ends. |
| ❌ MYTH: You should wait two years after a serious health event before applying.
✅ TRUTH: In many cases, you can apply for a graded benefit or guaranteed issue policy immediately – you don’t have to wait. The graded benefit period on those policies serves the same purpose as the contestability period for level benefit policies. Waiting simply delays your family’s protection unnecessarily. |
| ❌ MYTH: Minor paperwork errors on your application can get your claim denied.
✅ TRUTH: Immaterial errors – wrong dates, forgotten minor procedures, unfamiliar medical terminology – are not grounds for denying a claim. Courts have consistently held that only material misrepresentations that affected the insurer’s underwriting decision can void a policy. |
It is always two years from the policy issue date. After those two years, the policy becomes permanently incontestable and the full benefit must be paid for any valid claim.
After the two-year contestability period ends, insurers cannot deny a claim based on misrepresentation. They can only deny claims for other valid reasons – such as the policy lapsing due to non-payment.
In most policies, accidental death is paid in full even during the contestability period. The review is primarily aimed at natural or illness-related causes of death.
If a material misrepresentation is discovered, the insurer may deny the full benefit and instead return the premiums paid, with or without interest. The family keeps the returned premiums but loses the death benefit.
Yes – all life insurance policies include a two-year contestability period, including graded benefit and guaranteed issue policies. These policies also have a separate two-year graded benefit period, which are two different but overlapping concepts.
Yes – every policyholder and beneficiary has the right to appeal. Start by requesting a written denial explanation, then file an internal appeal with the insurer and escalate to your state insurance commissioner if needed.
No – only undisclosed pre-existing conditions are a problem. If you disclosed the condition on your application and were approved, the insurer accepted that risk and the contestability review will confirm your honesty.
It depends. If you make a material change to your policy – such as significantly increasing your benefit amount – a new contestability period may start for the changed portion. Minor adjustments typically do not reset the clock.
The contestability period sounds intimidating. But for the vast majority of seniors who apply honestly, it’s nothing more than a two-year administrative window that closes quietly – and your family’s protection becomes unconditional on the other side.
The only people who have reason to worry are those who weren’t truthful on their applications. And the good news is, with the right guidance, there’s no reason to be dishonest. Whatever your health history looks like, there is a final expense policy that covers you fairly – whether that’s a level benefit policy, a graded benefit policy or a guaranteed issue policy with no health questions at all.
At OLPolicy, we make sure every client understands exactly what they’re signing up for – which policy type is appropriate for their health, what the contestability period means for them personally and how to make sure their family never faces a surprise at claim time.
| Want a Policy That Protects Your Family From Day One?
OLPolicy’s licensed specialists help you apply honestly and choose the right policy – so your family never has to worry about a denied claim. 📞 Call OLPolicy: (866) 757-5350 |
OLPolicy | Licensed Insurance Agency | (866) 757-5350 | www.olpolicy.com
This article is for educational purposes only. Policy terms, contestability rules and claims processes vary by carrier and state. Consult a licensed agent for advice specific to your policy.
