What is the incontestability clause in life insurance?

The incontestability clause states that after a policy has been in force for two years, the insurer cannot deny a claim or void the policy based on misrepresentations in the original application — except in cases of outright fraud. This protects beneficiaries from having a valid claim denied due to minor errors or omissions the policyholder made when applying. During the first two years, however, the insurer can still investigate and rescind the policy if it finds material misrepresentation.