Life insurance policies, do they cover any kind of death?
Life insurance policies, do they cover any kind of death?
Do life insurance policies provide coverage no matter what kind of death occurs? For instance, if someone takes their own life, is the policy void? It seems as though there has to be some kind of protection against these companies for people who intend on taking their life, and would want to leave some money behind for their family.
Does this kind of situation vary from company to company?
Thanks for the help!
P.S.- This is just a random question that came to my mind, I am in no way suicidal, and don't plan to attempt this, I am just curious. Thank you.
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7 Responses
2.1.2010
Policies have a CONTESTABLE period, where the first several years, which varies by state but is usually 2 – 3, they do NOT pay for death by suicide. Some could have an absolute suicide exclusion.Some, only pay out for death by accidental causes, NOT NATURAL causes (accidental death policies). Some, don't pay out at all, unless you live at least two years (guaranteeed issue policies). So it varies from state to state, and by which TYPE of life insurance policy you have.
2.1.2010
Almost all life insurance policies these days cover every type of death. In the first 2 years of the policy, you cant lie about your health from before the day you applied, or commit suicide. If they will find out in this time frame, they will only pay back the premiums (money spent to that point). After two years, even that's covered too and they will pay out all of the money. Source(s): I am a life insurance broker that compares almost all companies to guarantee the lowest price (insure.com).
2.1.2010
Individual policies don't cover suicide within 24 months and group policies usually exclude it altogether. You may find 'acts of war' clauses or service in the military but other than that feel free to die a slow painful death or peacefully in your sleep and the check should still come just the same. The only other exceptions are usually just fraud.
2.1.2010
I work for a company that sells life insurance although I am not licensed. I think most policies have a disclaimer that you cannot take your own life within two years of the contract issue date.
2.1.2010
lifeinsurance.awardspace.info – try this one. I have their insurance and, as remember, they can provide such a service.
2.1.2010
It all depends on how the policy is written. Most do have some kind of suicide clause in it, but often it is only for a window of time. It might say that no payout for suicide within 24 months of policy starting. But, if you keep the policy beyond that window of time, then it would pay.
2.1.2010
No, some insurance only covers a death if it happens a certain way. You would have to read the policy very carefully. The way these things are written is to have them confuse the consumer so they don't know what they really have. Term insurance is the best way to go. The cash policies are junk but the insurance agent will never tell you that because they make their biggest profit off of that. As far as suicides, yes insurance companies do protect themselves from that. There is a clause in the policy stating if a person willfully kills themselves it will not pay out. Also some policies will not pay out if a person is killed due to "war time activities" as boring as life insurance policies are you should really read them!!