All life insurance companies do pay their death claims. There are no exceptions to that.
But when you buy your life insurance you need to make sure you are buying the kind you really need.
ForInsttance, if you buy 20-year term life insurance it will only pay if you die in the next 20-years. If you live longer, it's over.
Yes, Life Insurance carriers make good on their contracts all the time. If an individual had a life insurance policy in force and dies, his or her family will receive the death benefit proceeds. The insurance carriers will look for information about the cause of death. If no foul play or false reports a death benefit claim will be paid.
It is important to be open and honest when filling out an application. Do not hide the fact if you are a smoker or have a family history of depression. We respect your privacy. It is always better to disclose this information upfront. After the 'two year' contestability period, if you stopped smoking for more than one year and have no other health issues you should renegotiate the cost of insurance with the insurance carrier. It could end of saving you money over the length of your contract.
The point is do not avoid purchasing life insurance or lie on the application because you smoke or have high blood pressure. You can always go back and renegotiate the cost of insurance. By misrepresenting information about yourself on the application you could put your family at risk in the event of death and a claim not being paid.
Founder, Protection From Life, Founder of Protection from Life - Insurance a Better Way
Yes life insurance does pay. When you buy a policy that you plan on holding on to for 10, 15, 20 years or longer. You are entering into a long term relationship with this company. While rates and fees are important, the most improtant factor should be the strength of the company. You want it to be around so it can pay the claims.
My father passed away recently at age 84, and a policy that he had gotten at age 16, paid. My mom said it was a poignant time for her. Steps you are taking now can show your love, and benefit those you leave behind, far into the future.
Yes, life insurance really pays. Your question strikes a chord because beneficiaries really do feel that way when they get the check for life insurance proceeds after a loved one dies. "It really paid!" And the main object of their gratitude is for the person who thought to buy that policy for their benefit.
President, Lane Independent Agency, Southern California
Yes, life insurance pays. However, if you commit suicide during the first two years, it will only repay the premium plus interest, so don't think of doing that. Otherwise, for a death that is insured against, yes your family or friends will collect the payment. Unless the company is substandard, they will actually come to you and deliver a check. Those few substandard operations will try to get the payment to be placed into another policy, for the beneficiary, so they do not have to pay it all out. But they cannot require that, and most companies will not even try to do that. The check is theirs and they are encouraged to take it immediately, and place it in a safe place, or if they choose, spend it right away! Thank you. GARY LANE.
That is a great question! I think that it is a shame that we even have to ask anymore if companies are honest...In all the policies I've ever written, only one did not pay out the whole amount, and that was because they thought there was some false answers on the application. They still paid back everything that had ever been paid in, plus some interest. There are a great many companies that are honest, and do the right thing. If you want to see how honest yours is, go to your State's Department of Insurance site, and look at the complaints filed. If you are in the process of deciding whether life insurance is right for you, please contact me, and we'll discuss your concerns privately. Thank you for asking!
Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
Life Insurance is a legal contract. You have one obligation, pay the premium. The company has a primary obligation, deliver the death benefit. There are other obligations for the companies but to answer the question. The company must do their part, if you do yours.
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But when you buy your life insurance you need to make sure you are buying the kind you really need.
ForInsttance, if you buy 20-year term life insurance it will only pay if you die in the next 20-years. If you live longer, it's over.
It is important to be open and honest when filling out an application. Do not hide the fact if you are a smoker or have a family history of depression. We respect your privacy. It is always better to disclose this information upfront. After the 'two year' contestability period, if you stopped smoking for more than one year and have no other health issues you should renegotiate the cost of insurance with the insurance carrier. It could end of saving you money over the length of your contract.
The point is do not avoid purchasing life insurance or lie on the application because you smoke or have high blood pressure. You can always go back and renegotiate the cost of insurance. By misrepresenting information about yourself on the application you could put your family at risk in the event of death and a claim not being paid.