Which term refers to the principle that a policy cannot be contested after a certain time?

The principle that a policy cannot be contested after a certain period is known as the incontestability clause. This clause establishes a timeframe, typically two years from the policy's effective date, during which the insurer can investigate and potentially contest claims based on misrepresentations or omissions made by the policyholder during the application process. After this period, the policy is considered valid and cannot be voided for those reasons, providing essential protection for policyholders by ensuring that they have certainty about the coverage they have purchased.

This clause promotes the integrity of life insurance contracts and encourages insurers to conduct thorough underwriting before the contestability period ends. It helps build trust in the insurance relationship, allowing policyholders to feel secure that their policy remains in force as long as they have met the terms and conditions agreed upon.