term life insurance would it still pay out in the event off death in less than two years?
If i got term life insurance and a year went by and lets say I was killed in a wreck or a fire or a car i was working on fell and crushed me would the insurance company still pay out since it hasn’t been 2 years since i got the insurance
February 28th, 2009 at 11:00 PM
In the circumstances you describe the insurance policy would pay the benefit the day after it was issued unless the application was fraudulent. The two years you are concerned about is the suicide clause. If you would commit suicide before the policy has been in effect for two years the benefit would be denied but an accidental injury as you describe would entitle the beneficiary to the life insurance benefit you purchased.
February 28th, 2009 at 11:00 PM
Most policies would pay under these circumstances. Usually the only restriction is fraud or suicide.
February 28th, 2009 at 11:00 PM
The two years is the contestability period. If you die prior to two years they can go back to your application and will investigae to see if everything you said was the truth. If so, you have no worry. If not, they could rescind the policy back to conception and just refund the premiums paid.
February 28th, 2009 at 11:00 PM
That two years, is the time that the insurance company can challange the policy to see if you lied about anything.
If you die within the two years, they investigate, and find your application was honest, they’ll pay out, unless you suicide. But if you lied about something - like smoking, for instance, or recreational drug use, or whatever, they can deny your claim - because you lied on the application.
February 28th, 2009 at 11:00 PM
Good question…this is why it’s important to look for an affordable term plan BUT read the policy so you can see when it will or won’t pay.
These are called exclusions so you want to ask your agent about these types of details.. Just ask “what are the exclusions” to this plan? And have them show you them in writing!
One common type of exclusion is when the insured is a pilot or a professional athlete. Or if the insured dies within the first year or so.
Just ask and they’ll tell you. Because you don’t want to learn about exclusions when you NEED the coverage.
http://www.texastermlife.com