by Guest » Thu Sep 01, 2011 10:05 am
I was just wondering as to what exactly is a death benefit in life insurance. Is a natural death always necessary to get these benefits or suicidal or accidental death are also considered ? Can anyone help on this.
Posted: Fri Sep 02, 2011 08:38 am Post Subject:
Death benefit is the payment that a beneficiary receives from a life insurance policy, upon the death of the insured.
In the event of a suicidal death, it is to be considered as to when the policy was taken. Insurance companies usually don’t pay any death benefit if the policy was bought less than two years before the suicidal death.
However, in the case of an accidental death, life insurance does pay out death benefits.
Posted: Fri Sep 02, 2011 02:48 pm Post Subject:
To put it simply: Death by suicide within two years (one year in a few states) of the policy effective date will only entitle the beneficiary to a refund of premiums paid. All other manner of death will allow the death benefit to be paid to the beneficiary.
There are policies that only pay when the death is due to an accidental cause. Those are not life insurance, they are accidental death benefit policies. Dead by any other means will not be paid.
Add your comment