Suicide Exclusion Adter the 2 Years Policy

[mpiazza000]

I dont understand this policy. Most source explains that if suicide is committed after 2 years (in most case) then the benefit would be received by the beneficiary. Is this the amount that the insurer paids only, or the coverage amount that the person is entitled to in ordinary events of death?

 

[goillini52]

I dont understand this policy. Most source explains that if suicide is committed after 2 years (in most case) then the benefit would be received by the beneficiary. Is this the amount that the insurer paids only, or the coverage amount that the person is entitled to in ordinary events of death?

If the insured commits suicide in the first 2 years the policy is in force, the insurance company pays nothing. After 2 years it pays the full amount. I believe that a few states might have a 3 year clause.

 

[WinoBlues]

I dont understand this policy. Most source explains that if suicide is committed after 2 years (in most case) then the benefit would be received by the beneficiary. Is this the amount that the insurer paids only, or the coverage amount that the person is entitled to in ordinary events of death?

What are you talking about? Are you reading something in a policy? If so post it word for word? What company and product?

 

[mpiazza000]

If the insured commits suicide in the first 2 years the policy is in force, the insurance company pays nothing. After 2 years it pays the full amount. I believe that a few states might have a 3 year clause.

But the full amount meaning the permium amount the insurer has already paid for the insurance? or the coverage that he is entitled to say if his death was a ordinary death.

 

[goillini52]

But the full amount meaning the permium amount the insurer has already paid for the insurance? or the coverage that he is entitled to say if his death was a ordinary death.

Full amount, meaning Face Amount.

Why don't you do like Wino said and post some info about the policy and the company it's with?

 

[mpiazza000]

thefederation.org/documents/v58n3-sentell.pdf

Page 18 of this link

But I am not sure how good this source applied to typical life insurtance

 

[goillini52]

thefederation.org/documents/v58n3-sentell.pdf

Page 18 of this link

But I am not sure how good this source applied to typical life insurtance

So you're studying for a test?

 

[STIBROKER]

But the full amount meaning the permium amount the insurer has already paid for the insurance? or the coverage that he is entitled to say if his death was a ordinary death.

The suicide clause found in life insurance policies provide for return of premiums paid where the insured commits suicide within two years of the policy date......

 

[DHK]

Generally speaking, for suicide committed during the first two years of a policy, a refund of premiums paid *may* be offered.

For suicide after 2 years, a payment of proceeds of the insurance death benefit is paid to beneficiaries.

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So you're studying for a test?

It's some kind of legal defense site... so who knows? Could be research on a case against an insurance company.

 

[FEX Quotes]

The article referenced has very little, if any relevance to your original question.

In a traditional life insurance policy, should an insured die by suicide within the defined contestability period (usually 2 years), the beneficiary usually receives premiums paid and nothing else. After the two year period, all bets are off.

There are other types of policies that have a death benefit and may have a more restrictive period. This is one of the points the article made reference to.

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It's some kind of legal defense site... so who knows? Could be research on a case against an insurance company.

One of the points made in the article related to motive and intent, which is an interesting discussion in and of itself.

Example #1: Insured is found dead with a suicide note by his side. This is rather cut and dried with regard to motive and intent.

Example #2: Insured's car is found in a lake with body inside. Not so clear here until forensically ruled a suicide.

There are probably hundreds of cases each year similar to the second example where motive and intent are not immediately evident.