Contract boundary and incontestability
The entire-contract clause defines what counts—policy, application, endorsements. After the contestable period, insurers are generally barred from voiding for non-fraud misstatements—but fraud, lack of insurable interest and similar challenges can still matter. Age/sex misstatement usually adjusts benefit or premium—not a free upgrade.
Grace, nonforfeiture, loans and reinstatement
A grace window briefly keeps cover alive if you pay late. With cash value, nonforfeiture may include APL, reduced paid-up, extended term or cash surrender—ask the default and irreversible cash-out costs. Policy loans borrow against cash value from the insurer; unpaid principal and interest reduce death or surrender proceeds. Reinstatement revives a lapsed (not surrendered) policy, often with health evidence and arrears—and may restart contestable clocks.
Beneficiaries, assignment, dividends and suicide exclusion
Primary vs contingent beneficiaries set payment order; revocable names can usually change while the owner lives; irrevocable needs consent. Living/accelerated benefits may need a beneficiary release. Public policy bars a beneficiary who unlawfully causes death. Assignment is absolute (ownership) or collateral (pledge)—not the same as renaming a beneficiary. Dividend and settlement options need guaranteed vs non-guaranteed hygiene; suicide exclusion is often an early window with premium return—not a forever bar.
Study tips
- Simulate stopping premiums: list this policy’s default nonforfeiture exit
- Beneficiary sheet: primary/contingent, revocable?, last update date