Contestability Periods in Life Insurance — What Families Need to Know
When a loved one passes away, the last thing a family expects is for the life insurance company to delay or deny payment. But if the death occurs within the policy's contestability period, that's often exactly what happens.
In Alberta, nearly every life insurance policy includes a two-year contestability clause. During that time, the insurer can investigate the application for errors, omissions, or misrepresentations — even if the cause of death has nothing to do with the alleged issue.
As Alberta insurance lawyers who once defended insurers, we've seen how this clause is used — and abused. It's one of the most common reasons families face long delays or outright denials after a death.
This article explains what a contestability period is, why insurers use it, how it affects your claim, and what families can do to protect their right to payment.
This guide covers:
What Is a Life Insurance Claim?
Life insurance provides financial protection for your family after your death. When the insured person passes away, the beneficiary files a claim for the policy's death benefit.
Most Alberta policies fall into three main categories:
What Is a Contestability Period?
The contestability period is a defined window — usually two years from the date the life insurance policy takes effect — during which the insurer can review and challenge the validity of the application.
If the insured dies during that period, the insurer can:
Delay payment to investigate the claim. Review all application forms, medical history, and doctor visits. Request access to hospital and pharmacy records. Deny payment if they find errors, omissions, or misstatements.
After the contestability period
After the two-year period passes, the policy becomes incontestable — meaning the insurer must pay the death benefit unless there was fraudulent misrepresentation.
The contestability period allows insurers to investigate claims, but it doesn't give them unlimited power to deny payment.
How Families Can Protect Themselves
Taking proactive steps can help protect your family's right to benefits:
Keep copies of the original application and all correspondence
Maintain complete records of all policy documents and communications with the insurer.
Gather medical records early to confirm accuracy
Review medical records to ensure the application accurately reflected the insured's health status.
Report changes in health or lifestyle if applying for additional coverage
Update the insurer about any significant changes when seeking policy modifications.
Avoid partial answers — fully disclose relevant medical history
Be thorough and honest when completing insurance applications to prevent future disputes.
Consult a lawyer if the insurer requests authorization for medical records after death
They may be preparing for a contestability review. Early legal involvement can protect your rights.
How a Lawyer Challenges Contestability Denials
When an insurer denies or delays payment under the contestability clause, an Alberta insurance lawyer can help level the playing field.
Review the application and policy
Identify whether questions were ambiguous or unfairly interpreted.
Obtain medical evidence
Confirm that any omission was minor or unrelated to the cause of death.
Challenge insurer assumptions
Prove that the alleged misstatement was innocent, not intentional.
Negotiate or litigate
Push for full payment and, if warranted, pursue bad-faith damages.
Frequently Asked Questions
Conclusion
The contestability period is one of the most misunderstood — and misused — clauses in Alberta life insurance. It allows insurers to investigate claims, but it doesn't give them unlimited power to deny payment.
The contestability period lasts two years.
Insurers must prove material and intentional misrepresentation.
Innocent mistakes shouldn't void coverage.
Legal action can compel payment and, in some cases, additional damages.
Don't let insurers deny your rightful claim — call today for a free case review.
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