Life Insurance Q #01: What is Not Covered by Life Insurance?
Your beneficiaries won’t get the death help if your life insurance policy is expired or in cases involving criminal activities, policy exclusions, or fraud.
- Fraud: If you fib on your life insurance application, your provider can withdraw your life insurance policy while you’re alive or deny or lower the payout to your loved ones when you die.
Exclusions: If you have a risky hobby, such as skydiving, you can get more inexpensive coverage by adding an exclusion into your life insurance policy, but then the policy won’t settle out if your death is skydiving-related.
- Criminal activity: If you die while doing something prohibited or illegal, your provider won’t pay out. If a beneficiary executes a crime to attempt to get your insurance money, they’ll be rejected a payout, but any innocent beneficiaries will still
- Expired policies: Policies just stay active while you pay your premiums and as long as your policy’s term. If your coverage lapses or expires before you die, your beneficiaries don’t get the death benefit.