Unless you have an accidental death policy, your Life insurance would cover any type of death. Some policies may exclude war or act of war. Most policies also have a two year suicide clause, stating they will not pay if you commit suicide within two years of policy issue. There is also a two year incontestability clause which gives the insurance company the right to contest the pay out if they feel that there was erroneous information provided on the application that was relied upon to issue the policy within two years of policy issue..
Life insurance covers death due to accident, injury, illness, and old age. The only thing it does not routinely cover is suicide during the first two years that the policy is in effect.
Some policies may exclude death caused while committing a felony, acts of war, r other similar, unusual circumstances. But those type of exclusions have become less common.
Rather than pay an extra cost to insure some high risk activities such as piloting small planes or deep sea diving, some people will opt to have an exclusion placed on their policy for that particular activity.
Unless it is spelled out, though, your life insurance policy covers death by any reason except suicide in the first two years.
A standard life insurance policy whether it is whole life, universal life or term covers all causes of death. The only exception is suicide which is excluded in almost all policies for the first two years. After two years in force suicide is covered as well. Accidental life insurance or accidental death and dismemberment (AD&D) policies only cover a cause of death by accident. Modified life insurance polices such as guaranteed issue plans cover all causes of death but the death benefit is graduated based on time in force.
Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
Life insurance is a simple contract. In exchange for you paying the premiums, the company promises to pay your beneficiary a certain sum when you die. If the company decides to exclude anything they notify you in the contract (suicide) and often will require that an amendment be signed to verify that you understand any additional exclusion.
Co-Founder, TermInsuranceBrokers.com, Goldenzweig Financial Group, Las Vegas, Nevada
Life insurance can cover death in one of two ways:
1) Full coverage
2) AD&D
Full coverage means that the life insurance policy will pay out a death benefit regardless of whether death occurs by illness (including old age & natural causes) or injury. This is the most common type of life insurance that is purchased because a person is much more likely to die due to illness than they are by an injury (e.g. car accident or a plane crash).
AD&D is short for Accidental Death & Dismemberment. This kind of life insurance, while typically cheaper than full coverage, only pays out a death benefit if death occurs due to injury (the types of injuries that are covered may be outlined in the plan as opposed to general language). Given that the average person is much more likely to die due to illness than they are from injuries, full coverage is a much more desired option for people. If a person dies by illness and has an AD&D policy, this coverage will not pay out a death benefit.
It's important to consult with an experienced life insurance broker to compare your options and help you determine the type, amount, and length of coverage that will be most suitable to your needs and budget and which carrier can offer that coverage at the lowest rates.
I hope the information is helpful - please feel free to contact me for help and if you have any other questions. Thanks very much.
President, Lane Independent Agency, Southern California
Life insurance will cover death by any cause, except suicide. However, it will even cover suicide if it takes place more than two years after enrollment. It is not just limited to accidents, as some other policies are. In a plane crash, covered, car crash, covered, run over, covered, cancer, covered, heart attack, covered. The point is, you are best off with all inclusive life insurance, and not just protection against cancer, etc. Thank you. GARY LANE.
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Some policies may exclude death caused while committing a felony, acts of war, r other similar, unusual circumstances. But those type of exclusions have become less common.
Rather than pay an extra cost to insure some high risk activities such as piloting small planes or deep sea diving, some people will opt to have an exclusion placed on their policy for that particular activity.
Unless it is spelled out, though, your life insurance policy covers death by any reason except suicide in the first two years.
1) Full coverage
2) AD&D
Full coverage means that the life insurance policy will pay out a death benefit regardless of whether death occurs by illness (including old age & natural causes) or injury. This is the most common type of life insurance that is purchased because a person is much more likely to die due to illness than they are by an injury (e.g. car accident or a plane crash).
AD&D is short for Accidental Death & Dismemberment. This kind of life insurance, while typically cheaper than full coverage, only pays out a death benefit if death occurs due to injury (the types of injuries that are covered may be outlined in the plan as opposed to general language). Given that the average person is much more likely to die due to illness than they are from injuries, full coverage is a much more desired option for people. If a person dies by illness and has an AD&D policy, this coverage will not pay out a death benefit.
It's important to consult with an experienced life insurance broker to compare your options and help you determine the type, amount, and length of coverage that will be most suitable to your needs and budget and which carrier can offer that coverage at the lowest rates.
I hope the information is helpful - please feel free to contact me for help and if you have any other questions. Thanks very much.