What Are The Key Provisions In A Life Insurance Policy? 
There are a dozen or so statutory provisions -LRB- the number varies a little by state -RRB- that set the minimum legal standards for life insurance contracts - insurers can and usually do make their provisions better for the consumer . For example , most states require a 10 day `` free look '' period during which a policy owner can back out of the purchase but many insurers in recent years have been offering as much as 20 days . Some of the key provisions , after basics like parties to the contract , insurable interest , etc. , from a consumer 's perspective are : 1 . Grace period for premiums of one month 2 . Incontestable and Suicide clauses - insurer can not in most cases contest a claim after 2 years 3 . Nonforfeiture provisions -LRB- cash surrender , extended term and reduced paid up insurance -RRB- and the unofficial nonforfeiture provision , automatic premium loan 4 . Reinstatement clause - provision to reinstate lapsed coverage after the grace period 5 . Rights to naming and change beneficiary 6 . Settlement provisions - alternatives to taking proceeds as lump sum 7 . Policy loans 8 . Assignment rights 