Which clause prevents the insurer from canceling a life insurance policy after a specified period?

The incontestable clause is a vital provision in life insurance policies. It typically states that after a policy has been in effect for a specified period—often two years—the insurer cannot deny a claim or void the policy due to misstatements made by the insured in the application. This means that once the contestability period has lapsed, the insurer is generally bound by the terms of the policy, providing greater security to the policyholder and their beneficiaries. This clause helps instill confidence in the policyholder that their coverage will remain intact as long as premiums are paid, even if there are minor inaccuracies in the application.

In contrast, other clauses mentioned, such as the conditional clause, refer to specific conditions under which the policy may pay out or be active. The rescission clause allows an insurer to cancel a policy under certain circumstances, typically related to material misrepresentation. Lastly, the aleatory clause relates to the unequal exchange of value inherent in insurance contracts where the premium paid may be significantly lower than the benefit received in the event of a claim.