Under What Circumstances Will Your Average Life Insurance Policy Not Pay A Claim For Your Death?
Posted December 22, 2009 – 10:17 pm in: structured settlements FAQUnder what circumstances will your average life insurance policy not pay a claim for your death?
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9 Comments
Life insurance policies are contestable during the first 2 years for suicide and for insurance fraud. After 2 years, the policy will pay the death claim.
Suicide – during the first 2 years – company will contest claim. Suicide after year 2, company has to pay the claim.
insurance fraud – during first 2 years, company can contest. after year 2, claim will be paid.
the other comments about plane crashes, sky diving, drug abuse are not true, unless fraud was committed to obtain policy in first place, AND you died in first 2 years.
Some have a suicide clause that states they will not pay out if you kill yourself within two years of taking out the policy. Otherwise, you should check the policy to see what it exactly states.
Suicide. Except in Missouri, where by law, they must cover that.
suicide, as seems to be a popular answer. if the beneficiary was responsible for the death. suicide, btw, is not an absolute – there are companies out there that will write it w no ‘2 year’ clause. as long as the person told the truth on the application, there would not necessarily be any exclusion for private planes, scuba diving, parachuting or that sort of thing. they would only deny a claim for something like that for ‘material misrepresentation’ – that is – you lied like a dog – you fly a dinky plane for a living and you said that you have never even been off of the ground. if someone is not a sky diver and says so on the application, but sometime down the road decides to try it once and buys the farm, the company will pay.
Suicide, death resulting from a plane crash, and death resulting from abuse of drugs.
Suicide
Usually it doe’s not matter what life insurance company is the exclusion is Suicide.
Suicide, declared war, skydiving accident, and there is always a starting period where you’re not able to receive benefits.
if it was a suicide.