Contract terms

The policy, like all insurance policies, is a legal contract specifying the terms and conditions of risks assumed. Special provisions may apply, such as suicide clauses wherein the policy becomes null if the insured commits suicide within a specified time (usually two years after the purchase date; some states provide a statutory one-year suicide clause). Any misrepresentations by the insured on the application is also grounds for nullification. Most contracts have a contestability period (also usually a two-year period); if the insured dies within this period, the insurer has a legal right to contest the claim and request additional information before deciding to pay or deny the claim.
The face amount on the policy is the initial amount that the policy will pay at the death of the insured or when the policy matures, although the actual death benefit can provide for greater or lesser than the face amount. The policy matures when the insured dies or reaches a specified age (such as 95 years old). The most common reason to buy a life insurance policy is to protect the owner's financial interests in the event of the insured's demise. The insurance proceeds may then be used to pay for funeral and other death costs; they may be invested. Other purposes include estate planning and retirement