When you complete the application for your life insurance policy and you omit an important fact, your policy can become void if the mistake is caught in the contestable period of the policy. Health factors that may have led to the denial of a policy or caused a severe raise in the cost would have to be found out during this evaluation period for the policy to become no good. If, during this period, no mistake is caught, the policy remains in effect for the length of time the policy states and in accordance with premium payments.
If a simple mistake is made, such as checking the wrong sex box or stating of age, the policy will remain in effect. However, if the policy is still active, the premiums will be adjusted to the correct amount for the right sex and age. If the policy is being paid out to the beneficiaries, the adjustment will be taken from the payout amount.