Life insurance does not cover death that occurs due to intentional, self-inflicted injury, any act that is attributable to war, atomic explosions, nuclear fusion or radioactive gas and the like or military, naval or air services for any country at war. In case of suicide within the first 2 years from the effective date of the policy, the liability of the insurance company is usually limited to the refund of the premiums without interest plus the cash value accumulated, if any. Medical conditions that have been concealed during the application and results to the death of the insured cannot be a basis for a valid claim and can be contested by the insurance company.

The policy automatically terminates and its benefits withdrawn when certain events occur. This would include non-payment of any premium within the grace period, termination, lapsing or conversion of the policy. A life insurance policy basically does not cover those that are not specifically mentioned as covered.

Fraud and false statements can be enough reason for an insurer to refuse to pay a claim. The questions in the application form should be answered truthfully. There is no advantage in doing otherwise as insurance companies check medical and credit records. False statements that manage to pass the application stage may still produce unwanted results when claim time comes.

It is not right to say that people with health conditions cannot buy life insurance coverage. Some insurers choose to charge premiums that reflect the level of risk an applicant represents instead of downright refusal to provide cover. Modern medical developments have made it possible for certain health conditions to be managed through proper medication, therapy or lifestyle changes. Medical information has allowed insurers to cover applicants with specific health conditions. However, more serious or incurable conditions present a significant risk that most insurers will not assume.

Life insurance benefits can only be had when the insured’s life is lost. Sometimes, circumstances may prevent the death benefit from being paid especially if they are particularly defined as something excluded from the coverage. The rules governing coverage essentially requires that an insurable interest is established in a person’s life. This would mean that the applicant, if not the insured, must demonstrate that the proposed insured’s passing would directly result in financial harm or hardship to the applicant. This is why there are several typical life scenarios that exist. Parents insure their lives in behalf of children or another loved one. Companies ensure the lives of key employees. Parents also insure the lives of their children and lending institutions require a specific minimum amount of life insurance on the person taking out the loan wherein the institution is named as the beneficiary.

Related Link: life insurance at insurance1.com - all insurance quotes

Tags: