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 Posted: Sat Jan 17, 2009 1:31 am Post subject: life insurance exclusion for suicide |
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Isn't it true if someone does lie on application and it goes 2 years with out the company catching it they can;t hold it against them. They will also be completely covered. Isn't it true if someone is covered for 2 years and they committe suicide they are also covered.
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wodering
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| Posted: Sat Jan 17, 2009 7:00 am Post subject: |
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| Quote: | | Isn't it true if someone does lie on application and it goes 2 years with out the company catching it they can;t hold it against them. |
I don't think this information is true. I'd rather believe my carrier would cancel my policy once they come to know about these lies. It might be their sole discretion whether or not to cover me anymore.
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anonymous00
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| Posted: Sat Jan 17, 2009 8:33 am Post subject: |
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Yeah, I agree with Anon its unlikely to be true. The insurance companies run a thorough check before approving a plan. Also there are the underwriters who would look into the risks associated with covering an individual.
2ndly, the insurance company would always deny a claim if they find out that you have lied in the policy document.
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Darla Heins
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| Posted: Sat Jan 17, 2009 8:41 am Post subject: |
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| Quote: | | Isn't it true if someone is covered for 2 years and they committe suicide they are also covered. |
Its true that the life insurance companies cover death caused by suicide once the suicide exclusion period gets over. On an average it runs for the first two years of the policy. However, different states have different exclusion period. Hence, you may need to refer to your state's guidelines to know more about it.
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robust mollusc
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| Posted: Sat Jan 17, 2009 11:35 am Post subject: |
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| Quote: | | Isn't it true if someone does lie on application and it goes 2 years with out the company catching it they can;t hold it against them. |
As far as I know, health, life and disability insurance usually run a background check on the applicants with the help of Medical Information Bureau. A lie found at any stage of the tenure of the policy may give the insurer reason enough to cancel the policy no matter if it is found after 2 years
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sil
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| Posted: Sat Jan 17, 2009 11:47 am Post subject: |
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It's true wodering.
There is a two year incontestability clause and there is a two year suicide clause (Florida) other states may vary.
Generally once the incontestability clause time period has expired they no longer will contest the policy and simply pay the claim.
I say generally because fraud is forever and some frauds are considered so contractually egregious as to render the policy void from the beginning.
Such as,... having another person submit to the paramed exam because you know you wouldn't pass. That is outright fraud and well above a material misrepresentatation such as stating you quit smoking 2 years ago when it was actually 10 months.
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GarySpicuzza
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| Posted: Sat Jan 17, 2009 12:16 pm Post subject: |
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I do not think it's true...can you please tell us the source from where you got this information
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tusharagg87
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| Posted: Sat Jan 17, 2009 2:08 pm Post subject: |
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| Quote: | | I do not think it's true...can you please tell us the source from where you got this information |
It's TRUE in the United States of America.
Are you asking about USA life insurance policy provisions or are you asking about India's life insurance policy provisions?
If you are asking about India you should refer your question to an agent from India.
And thank you for asking:
| Quote: | | "the source from where you got this information" |
It's comes right from Florida Statute 627.455
| Quote: |
627.455 Incontestability.
Every insurance contract shall provide that the policy shall be incontestable after it has been in force during the lifetime of the insured for a period of 2 years from its date of issue except for nonpayment of premiums and except, at the option of the insurer, as to provisions relative to benefits in event of disability and as to provisions which grant additional insurance specifically against death by accident or accidental means. |
Please don't hold me to this...but I believe in "lawyer speak" what's quoted below from Florida Statute 627.463 means egregious fraud is forever.
| Quote: | | 627.463 Excluded or restricted coverage.--A clause in any policy of life insurance providing that such policy shall be incontestable after a specified period shall preclude only a contest of the validity of the policy and shall not preclude the assertion at any time of defenses based upon provisions in the policy which exclude or restrict coverage, whether or not such restrictions or exclusions are excepted in such clause. |
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GarySpicuzza
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| Posted: Sat Jan 17, 2009 10:32 pm Post subject: |
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| Gary is correct. |
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dgoldenz
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| Posted: Mon Jan 19, 2009 12:35 am Post subject: insurance |
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| In a (Military) Life Insurance policy, if you commit suicide, at ANY time, the policy becomes 'Null and Void.' |
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sdchargersfan
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| Posted: Mon Jan 19, 2009 1:09 am Post subject: |
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| If it's really a concern, then don't buy military life insurance policies... |
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dgoldenz
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| Posted: Mon Jan 19, 2009 1:16 am Post subject: insurance |
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| Only those people that serve in the Military can have a 'Military' Life Insurance policy. It's actually MANDATORY for a Military personel to get one. You can get a $250,000.00 OR $400,000.00 policy. You can have the 'Military' one as a 'Secondary' policy, if you would like. But, you DO need to have one. |
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sdchargersfan
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| Posted: Mon Jan 19, 2009 12:00 pm Post subject: |
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sdchargersfan wrote:
| Quote: | | In a (Military) Life Insurance policy, if you commit suicide, at ANY time, the policy becomes 'Null and Void.' |
Really?
That's odd since the private sector recognizes that death by suicide is just as financially and emotionally devasting to the family as death by any other cause.
Are you sure SD'?
I can't find that statement anywhere on this link from the United States Department of Veterans Affairs.
In fact they state:
| Quote: | True of False: There are several war or terrorism exclusions that would prevent payment of my SGLI or VGLI insurance to my beneficiary.
False: There are no exclusions that apply to SGLI or VGLI coverage. |
and further states:
| Quote: | How Can SGLI Coverage be Forfeited?
The coverage provided by the SGLI program will be forfeited only when an insured member is found guilty of mutiny, treason, spying, or desertion, or refuses, because of conscientious objections, to perform service in the Armed Forces of the United States, or refuses to wear the uniform of such force.
No insurance shall be payable for death inflicted as a lawful punishment for crime or for military or naval offense except when inflicted by an enemy of the United States. |
Please help me as I can't find any reference to non-payment that suggests death by suicide is excluded forever.
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GarySpicuzza
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| Posted: Mon Jan 19, 2009 12:58 pm Post subject: |
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Since SGLI is issued and underwritten by commercial insurance companies, it would not make sense for this life insurance program to not have the same suicide clause as any other life insurance policy.
There are several reliable sources that state exclusions in the military life insurance program, as well as, insurance payments in the event of suicide.
This comment was found on an official military web site:
| Quote: | Cause of death is irrelevant for purposes of paying SGLI (see 38 USC Sections 1965 - 1976 and 38 CFR Part 9). So long as you are covered, SGLI will pay your beneficiaries even if your death
is the result of DUI or not wearing a seat belt (even suicide is covered). Again, cause of death is irrelevant for purposes of paying SGLI. |
This comment was found on the Air Force Academy web site:
| Quote: | Survivors Group Life Insurance (SGLI) is group term life insurance for members of the armed forces. Active duty members are automatically insured for $200,000, unless they opt out in writing. SGLI is a better choice than many other insurance plans because it pays out in situations, such as death by war or suicide, where other plans do not.
Legal Office - United States Air Force Academy |
This is what United States Code says:
| Quote: | 38 USC - US Code - Title 38: Veterans' Benefits
Sec. 1973. Forfeiture
Any person guilty of mutiny, treason, spying, or desertion, or who, because of conscientious objections, refuses to perform service in the Armed Forces of the United States or refuses to wear the uniform of such force, shall forfeit all rights to Servicemembers' Group Life Insurance under this subchapter.
No such insurance shall be payable for death inflicted as a lawful punishment for crime or for military or naval offense, except when inflicted by an enemy of the United States. |
Since the U. S. Code does not give "suicide" as a reason for forfeiture of military life insurance and since the other military web sites specifically mention insurance payment in the event of suicide, a reasonable person would have to believe that proceeds from a military life insurance policy would be paid to the beneficiary, even in the event of suicide. |
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InsuranceMaze
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| Posted: Mon Jan 19, 2009 1:44 pm Post subject: |
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SD maybe this is what someone told you that hadn't read the policy...I find that most of the country still thinks that suicide is a deniable reason for all life policys...when in truth it is not, for most...most policys will expressly address suicide and when and how they can deny payment (OR NOT)...in their policys...have another look at your policy and let us know.
I have been the unfortunate (close) family memeber of two suicides both times, ALL life policys paid..
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