Evans Insurance Services Inc. Blog
People who purchase life insurance usually have the intention of ensuring the well-being of the beneficiary, especially after the death of the insured. However, many don’t think about the circumstances where the death benefit won’t be given, even if the policyholder has paid all the premium required. This article will discuss 7 circumstances where your insurer may cancel the pay out.
Your life insurance policy contains a suicide clause, where in the event of suicide, the insurer would only need to return the paid premiums to the beneficiary without the death benefit.
Smoking and health issues
Some people try to hide or forget to state the fact that they have a habit of smoking or are having certain health issues, and if the death of the insured is connected to the fact, the beneficiary wouldn’t get the death benefit.
If you enjoy scuba diving, base jumping, race car driving, and any other dangerous activity, be sure to inform your insurer before purchasing the policy. These hazardous activities may not be included in the coverage, unless you are willing to pay a higher premium.
Causes of death that are related to illegal activities may cause your life insurance policy to cancel its death benefit payment to the beneficiary. Not only criminals should be wary of this, because even walking on someone else’s property without permission is considered a crime.
Your life insurance policy will have a war exclusion clause, where in the event of war your insurer wouldn’t have the obligation to pay the death benefit. Take note that this includes if the insurers travel to a region that is having wars.
Dying outside the insurer’s region
If you purchase a policy in the United States and pass away outside the country, your death benefit may not be given. Be sure to contact your insurer when moving overseas to confirm what would happen in such an event.
After your death, the insurer will have 2 years to investigate whether the information you’ve given them has been true or not. If you didn’t mention something when applying for a policy and your insurer find out, the policy wouldn’t give payment.
Be sure to consider events that would make your insurer cancel your death payment to ensure your beneficiary would get the benefits they deserve. Contact us if you have questions on how to ensure that the death payment would be given to the beneficiary. At Evans Insurance Services, we aim to provide comprehensive insurance policies that makes your life easier. You can get more information about our products and services by calling our agency at (610) 889-9300. Get your free quote today by CLICKING HERE.