Dangerous Hobby

[BNTRS]

I'm not sure I'm following. The DB on suicide during the suicide period is a refund of premiums - not even at interest - minus any loans. What companies do it differently?

While it's the same amount as a refund of premium, it's technically and legally a death benefit, the benefit is just specified as premiums paid.

This has a huge impact on legal implications regarding what an insurer can do if they choose to pay the death benefit under the suicide clause and then receive proof that death was not by suicide. This is why a lot of insurers will contest a death benefit when there is a suicide involved and try to refund premiums under a contest.

If instead they expeditiously pay the suicide death benefit amount and the beneficiary can prove that the death was not by suicide, than the insurer is legally obligated to pay the full death benefit.

This is why it's actually beneficial to the beneficiary to push back against a contest and try to ensure that suicide death benefit is paid.

 

[xrac]

One thing to talk to your friend about when it comes to insurance purchases talking like you got a set of balls ONLY raises your rates.

Tough guy, bas as sery talk only serve to make the underwriter uptight. When it comes to insurance, you talk about how safe you are, not how stupid.

Had a VP of a company tell me during the application process, "yea, I climbed Mount Rainier last year." when the question came up, chest all puffed out, full macho going on....

In my mind "oh s hit, extra rating.." Tell me about your experience? "Well first we got in a snow cat and traveled up the ice field where we stopped and hiked about 100 yards to a champagne and Strawberries lunch all laid out for us. Then we hiked back to the snow cat."

I had to call the underwriter and explain this was the Eiger Sanction with Eastwood, but a ride up the mountain for a picnic. No extra rating.

Being bad a ss during the application process is being a dumba ss. Make sure your friend realizes this. cheers.

People create a lot of unnecessary problems due to their big mouths. Open mouth insert foot is some people's moto.

 

[PandCforMe]

While it's the same amount as a refund of premium, it's technically and legally a death benefit, the benefit is just specified as premiums paid.

This has a huge impact on legal implications regarding what an insurer can do if they choose to pay the death benefit under the suicide clause and then receive proof that death was not by suicide. This is why a lot of insurers will contest a death benefit when there is a suicide involved and try to refund premiums under a contest.

If instead they expeditiously pay the suicide death benefit amount and the insured can prove that the death was not by suicide, than the insurer is legally obligated to pay the full death benefit.

This is why it's actually beneficial to the beneficiary to push back against a contest and try to ensure that suicide death benefit is paid.

Great info. Just made me look like the guy in the AT&T commercial with the little kids. Mind blown