Are there any exceptions where the life insurance company would not have to pay out the death benefit to your beneficiaries? It turns out there are a few. Fuhriman Insurance Agency lists some of the most common ones in Boise, ID.
In almost all cases, if you die by suicide within the first two years of buying a life insurance policy, the insurer can refuse to pay the death benefit. After two years have passed, though, suicide is generally no longer grounds for denial.
2. Drug and alcohol use
If you die from using drugs or alcohol, your life insurance policy may not cover it. This is because drug and alcohol use are considered high-risk activities that can lead to death, so insurers may exclude them from coverage or charge higher premiums for policies that cover them.
3. Dangerous hobbies
Certain hobbies, such as skydiving, rock climbing, and bungee jumping, are considered high-risk activities that could lead to death. As a result, your life insurance policy may exclude them from coverage or charge higher premiums for those that cover them.
4. Not disclosing pre-existing medical conditions
When applying for life insurance, you’re typically required to disclose any pre-existing medical conditions. Failure to do so could result in the insurer refusing to pay the death benefit if you die due to that condition.
If you’re murdered, your beneficiaries will likely still receive the death benefit. However, if convicted of murdering you, they will not be eligible to receive the money.
There are some exceptions where beneficiaries may not receive the death benefit. If you have any questions, don’t hesitate to contact Fuhriman Insurance Agency. We are here to help Boise, ID.