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One of the scariest things facing life insurance death benefit beneficiaries is the possibility that their claim for death benefit proceeds may be denied. During the first two years that a policy is in-force, all death claims are researched. If any information leads the claims department to believe that any information that would have led to a declined policy was omitted from or misrepresented on the insurance application, they can deny the claim. Fortunately, Mortgage Protection Insurance Companies all have something called an incontestability clause built into their policies. The incontestability clause specifies that, after a policy has been in-force for two years, the insurance company cannot contest any claims.
Of course, this does not give license to defraud an insurance company. The incontestability clause is meant to protect those individuals who may have made an unintentional error or omission on their life insurance application. If an insured is found to have purposefully misrepresented his or her health on an application, Mortgage Protection Insurance Companies have the right to cancel coverage and even press charges against the insured.