Life Insurance in Kyle TX generally has two main purposes. One is to provide money to the family after death occurs. Another is to pay for costs associated with a funeral or memorial service and burial, entombment or cremation. Some people worry about paying premiums for years only to have the company refuse to pay the claim at the end of life. Does this ever actually happen?
There are several reasons that an insurer can legally deny paying the policy amount to the beneficiary. One is if the requirements listed in the policy are not adhered to. Another is if the policyholder stopped making payments on a term life policy set up by an agency such as Perdue Insurance Group.
Suicide Clause
Some life insurance policies include clauses stating the company does not pay if the policyholder committed suicide. That includes assisted suicide a patient has arranged for by a medical practitioner. Before this clause became standard, people could initiate a policy with the intention of committing suicide soon afterward. They may have wanted to provide money for the family in this manner.
Illegal Activity Clause
Many policies will not pay if the client was committing a crime when death occurred. Being shot while robbing a convenience store may exclude the beneficiary from being eligible for benefits.
Fraud
Potential customers must be honest when filling out the application or the insurer can deny payment. The insurer may not cover individuals who smoke tobacco, for instance. If the person lies on the application and the company discovers this after the end of life, refusal of payment is to be expected.
Nonpayment
Whole Life Insurance in Kyle TX accumulates a value over time as the policyholder makes regular payments. Even if those payments end, the balance is still available and should be paid to the beneficiary once the death is confirmed to the company. Term life insurance, however, does not accumulate in value. It is similar to automotive insurance in that way. The policyholder pays the premium as scheduled and the company pays benefits when claims are made. If the customer stops making payments, all coverage ends.
