A life insurance policy can be contested by the insurer for how long after the contract is signed?

In Massachusetts, a life insurance policy can be contested by the insurer for a maximum of two years from the effective date of the policy. This period allows the insurer to investigate any potential misrepresentations or omissions made by the policyholder during the application process. However, if there is evidence of fraud, the insurer retains the right to contest the policy indefinitely. This rule is designed to protect both the insurer and the insured, ensuring that policies are issued based on accurate and honest information.

Understanding this framework is essential for recognizing the protections in place for both parties involved in a life insurance contract. The two-year contestability period helps establish a balance where the insured has some assurance of coverage after this time, while allowing insurers to challenge policies based on material misrepresentations or fraudulent activities occurring within that window.