A question I have a client of mine bought a globe life policy for children on his son two years before he met me. The kid was 15 when he bought it. A couple of weeks ago the kid who is now 20 yrs old was shot to death by someone who he was selling pot to. The policy has been in force for 4 years now. Will they pay out eventhough he was killed in the process of selling pot?
Will he denied
- Thread starter SamIam
- Start date
- 24,996
Based on what you posted. I would say yes. It is outside its contestability period. Assuming no lapses or reinstatements.
- 2,264
He died during an illegal act so it would depend on the policy language and most likely have nothing to do with the contestability period. Illegal acts, being on drugs or drugs in system could be a reason to deny the DB
- 24,996
I have personally been involved in hundreds of claims. And you know, I have never come across that. I have done several where murder or suicide were involved and they all paid. I called one of my long time companies and asked one of the claims reps. She said while they would pay the claim she has heard from other agents that some companies will not. So a death while DUI would not pay with one of those companies.
I was trying to explain this to Newby once. You (dead or not) can't profit off of the crime that you are committing....or something like that.
- 24,996
Yeah, as in beneficiary killing an insured. I did not think it would be killed while committing a crime.
I need to read some policies a little deeper.
I need to read some policies a little deeper.
You may very well be right about that. It actually makes more sense when you state it that way.
- Thread starter
- #8
The policy itself doesn't mention anything about illegal acts or being on drugs but the accident benefit rider does. But this wouldn't be considered an accident.
- 2,264
What I would be afraid of is the part about he was selling but if he wasn't charged with a crime prior to this event it might pass. I would expect the DB to be held up pending the coroner's report.
My neighbor's daughter 'accidentally' overdosed. The coroner's report cancelled all hope of receiving the death benefit
- Thread starter
- #10
He didn't overdose and the base policy doesn't mention anything about illegal acts but the accident rider does. But what do I know? But they are waiting for the corners report. I'm sure it's going to show shot to the aorta.
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