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: Mon Jan 19, 2009 01:16 am Post Subject: insurance
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.
Posted: Mon Jan 19, 2009 12:00 pm Post Subject:
sdchargersfan wrote:
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:
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:
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.
Posted: Mon Jan 19, 2009 12:58 pm Post Subject:
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:
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:
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:
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.
Posted: Mon Jan 19, 2009 01:44 pm Post Subject:
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..
Posted: Mon Jan 19, 2009 03:53 pm Post Subject:
Seems we have moved to the subject of "suicide", rather than the original question about lying on a life insurance application.
All life insurance policies I have ever seen, have a two-year "contestible" period. If a person dies within this contestible period and the insurance company discovers a reason(s) that the life insurance policy should not have been issued, all premiums paid will be refunded and that's the end of that.
After the policy has been in force for the length of the contestible period, the claim will be paid, unless the applicant has comitted fraud.
Ins Investigator might want to join in on this one.
Posted: Tue Jan 20, 2009 01:01 am Post Subject:
Seems we have moved to the subject of "suicide", rather than the original question about lying on a life insurance application.
Read the OP again Maze...
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.
Posted: Tue Jan 20, 2009 11:34 am Post Subject:
Great info Maze especially the TITLE 38 > PART II > CHAPTER 19 > SUBCHAPTER III > § 1973.
The reason why I believe most people think suicide isn't covered is because the suicide exclusion clause is written in "lawyer speak" and...this is going to sound dumb, but in the policy it's titled Suicide Exclusion.
Most people read the title Suicide Exclusion then infer suicide isn't covered. They don't bother to read the actual clause that states something to the effect, if the insured commits suicide while sane or insane within two years of policy issue our liability shall be limited to the refund of the premiums paid.
So you can see the company states the time frame (2 years) and what's paid (refund of premiums) if you commit suicide during the first two policy years.
An accidental death policy or an accidental death rider is another story. Those are NEVER paid because death by suicide is not an "accident."
Posted: Tue Jan 20, 2009 11:48 am Post Subject:
They would never be paid under accidental death policys i agree...but there ARE accidental suicides...trust me...
Posted: Tue Jan 20, 2009 12:29 pm Post Subject:
They would never be paid under accidental death policys i agree...but there ARE accidental suicides...trust me...
Can you please give one such example? I'm really curious. You want to mean that someone has decided to commit suicide but decided against it when it's already too late!!
Posted: Tue Jan 20, 2009 12:38 pm Post Subject:
The legal profession seems to be forging a battle with insurance companies over the "suicide exclusion".
Somewhere along the line, courts have agreed that in order for an insurance company to deny a "suicide" claim, it must prove the intent to commit suicide.
Proving "intent" can sometimes be very difficult, since the insured is no longer with us.
For example, does a person who drives 120 mph on I-95 have the "intent" to commit suicide ?, even though this person was killed in the crash.
How about a pre-arranged "accident" during a hunting trip? Can the "intent" to commit suicide be proven in a court of law?
Yes, there are many "accidental suicides", but who can prove it?
This is just another reason why insurance companies must adopt "legaleze" in the insurance contract and, at times, must increase their premiums. Court battles are expensive.
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