by Guest » Sat Jan 17, 2009 01:31 am
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 commit suicide they are also covered.
Posted: Sat Jan 17, 2009 07:00 am Post Subject:
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.
Posted: Sat Jan 17, 2009 08:33 am Post Subject:
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.
Posted: Sat Jan 17, 2009 08:41 am Post Subject:
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.
Posted: Sat Jan 17, 2009 11:35 am Post Subject:
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
Posted: Sat Jan 17, 2009 11:47 am Post Subject:
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.
Posted: Sat Jan 17, 2009 12:16 pm Post Subject:
I do not think it's true...can you please tell us the source from where you got this information
Posted: Sat Jan 17, 2009 02:08 pm Post Subject:
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:
"the source from where you got this information"
It's comes right from Florida Statute 627.455
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.
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.
Posted: Sat Jan 17, 2009 10:32 pm Post Subject:
Gary is correct.
Posted: Mon Jan 19, 2009 12:35 am Post Subject: insurance
In a (Military) Life Insurance policy, if you commit suicide, at ANY time, the policy becomes 'Null and Void.'
Posted: Mon Jan 19, 2009 01:09 am Post Subject:
If it's really a concern, then don't buy military life insurance policies...
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