does life insurance pay for suicides
hi my name is Tom
and I am a life insurance
agent now a lot of
people has been approaching
me since Robin William passing and asking how does
it work with the life
insurance company if
someone died due
to suicide and with the claim be payout the answer is yes and no now the
magic number is 2 so what this means is that within the first two years of
your policy it is it's in the contestable period meaning
that the
insurance company can deny
your claim so if
you died due to that due to suicide they might not pay out and actually most company will not pay out that is actually one of the exclusion that is on there the reason why it is on there is that it is
to prevent insurance fraud obviously if someone know
that they
want to
end their life and at the same time they want
to go to provide
it with
their family they can just get a life
insurance policy and
then make a couple payments
and then commit suicide and then
have that money for their family so we can't have too many people doing that
with with their two years exclusion period
the insurance company is hoping that if anyone even have that kind of thinking
then they would delay it and perhaps
forget about it or find other solutions
to take care of their problem besides death after two years so now if you
if someone does pass away within the first two
years of their having a life insurance policy some
most insurance company will pay out the
premium that has
already been paid yet some company might not so
you want to choose the company that will make the most sense to you now after two years you policy become incontestable which
is a fancy word that basically
saying that your life insurance
company is stuck with you so no matter what happened no matter how you die
have whether it is due suicide or while you're committing a the
life insurance company is obligated to pay out now some company may still
not pay out and most people
don't know that they can
fight it so there are a couple
of things that go on with what suicide that
that people don't know one is that the beneficiary kind
of assumed that
if someone dies
of suicide that the insurance
company don't pay out and so they
don't make that
claim if they don't make the claim the life
insurance company
is not going to chase
down the beneficiary
to pay the claim secondly
when someone died
in such an unexpected way there's a lot of emotions go on there's a lot of shame to even try to fight for
the money because of someone death so a
lot of
times people don't do that
people might not also do it because they do
not have the fun available or the resources
available to fight for the claim so
again that comes in in to choosing
the right insurance company that
that are uh people
that have
enough financial
backing stable to payout
and you know and to do right by the customer one
of the biggest things that I find out about being a life insurance agent is that
most of the times the beneficiary
don't even know that they are the beneficiary of a life insurance policy
so that coming to very important doesn't
matter if you die naturally or if you
don't due to an accident or some other
ways so you wanted to make sure
that your beneficiary you know oh the thing that
they need
to know obviously is which company you are insure
with for how much
and also how what your policy number
is so at least just those three information
they can follow claims so some
life insurance agent will actually explain
orders to the beneficiary with your permission so let their agent know if
you want the agent to talk to the
benefit the other problem that I
found out is that a lot of people don't know what type of life insurance they
have and there are different type of insurance
out there unfortunately when it comes to life insurance
people just assume that if I have life insurance to work then I
have nothing to worry about well
with group life insurance which is do work
most of them are accidental policy so if someone died due to an accident
it's not gonna pay out right because it is a plane death it is not due
to it's not due to a natural thing it's
not due to accident so so the life
insurance our
accidental policy
through a group life insurance may
not pay
out no matter how long you have that
policy the
second thing with the group life insurance
is that if your diet if you get layoff
or if you
get fire if you decide to leave
the company that life insurance does not
come with you so make sure that if you do have a life insurance policy through work make
sure you
also get some something that is individual outside of
work so that