After how long does an annuity become incontestable?

An annuity becomes incontestable after a specified period, which is typically two years. This means that after this duration, the issuer of the annuity cannot contest the validity of the contract on the basis of material misrepresentation or fraud that may have occurred at the time of application. This provision is significant because it provides security to the annuity holder, ensuring that the terms of the contract will be honored after the two-year period, regardless of any discrepancies in the initial application.

Other time frames, such as one year, three years, or five years, do not align with standard practices concerning contestability in annuity contracts. The two-year period strikes a balance between protecting the insurer's interests and providing a reasonable level of security for the policyholder.