What is a Life Insurance Incontestable Clause?

The Incontestable Clause is a clause in a life insurance policy providing that after a policy has been in effect for a given period of time (two or three years usually), the life insurance carrier shall not be able to contest the statements contained in the application for life insurance.

If an insured lied as to the condition of his/her health at the time the life insurance policy was taken out, that lie could not be used to contest payment of the death benefit under the insurance policy if death occurred after the time limit stated in the incontestable clause.