What usually happens after a specific period with an Incontestability Clause in Medicare policies?

The Incontestability Clause in Medicare policies is a key feature that protects policyholders after a set period, generally two years from the policy's effective date. During this time, the insurer has the right to review the policyholder's application and can contest claims based on misstatements or inaccuracies. However, once the specified period passes, the insurer cannot deny a claim based on those misstatements, as long as they were not made with the intent to deceive.

This provision is designed to provide security and peace of mind to policyholders, ensuring that they cannot be penalized for honest mistakes made in their application. Thus, claims filed after this period are typically honored, enhancing the reliability and trustworthiness of the policyholder’s coverage.

In this context, the other choices do not align with the principle of the Incontestability Clause. Insurers cannot contest claims based on previous misstatements once the period elapses, nor do the clauses guarantee automatic renewals or immediate claim payments, which are governed by other policy terms and conditions.