Events That Are Not Covered By an Insurance Policy
June 10, 2019
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Life insurance is generally a simple idea to understand. The insurer used guarantees that in the event of the policy holder's death, a sum of money will be given to the dependents or beneficiaries. Though the basic concept may seem simple, it is important to note that there are various circumstances that may void the contract. Before you put your signature to any agreement and start paying in money, it is useful to be clear on what potential scenarios can make the policy invalid.
As with any legally binding contract, if you were to give incorrect information on the application form, the policy would be void should the truth be discovered. It can be the case that an individual accidentally provides the wrong details, in such a situation the contract would still be invalid. Under no circumstance should you give information that you know to be wrong.
If the insured person was deemed to have put themselves at severe risk of death or bodily injury, this can be grounds for the insurer not paying out. If you take part in high-risk activities, for example sky-diving or motor racing, you should make the effort to find out whether an accident that results in death during such pursuits would make your life insurance policy invalid. If you are a lover of adventure sports, discuss with insurers prior to signing a contract whether or not you will still be covered.
Suicide is generally not a situation covered by insurers, and specifically not within the first two years of the policy being taken out. There may be a belief on the part of the insurance company that the coverage was purchased with suicide in mind as a way of ensuring funds are given to dependents early.
Acts of war are a gray area when it comes to cover. Not all companies will pay out if the policy holder dies as a result of being engaged in a military campaign. Of course, there are insurers who offer cover to serving military personnel, and who do pay out if they die when on duty, but the majority of providers are less likely to do so. If you are a member of the armed forces, it is essential that you choose your insurer carefully.
On a final note, if you were not to pay your life cover premium on agreed dates, the policy can be canceled. Never skip or delay a payment as this can result in a severe problem developing.
Article Source: http://EzineArticles.com/6666802
As with any legally binding contract, if you were to give incorrect information on the application form, the policy would be void should the truth be discovered. It can be the case that an individual accidentally provides the wrong details, in such a situation the contract would still be invalid. Under no circumstance should you give information that you know to be wrong.
If the insured person was deemed to have put themselves at severe risk of death or bodily injury, this can be grounds for the insurer not paying out. If you take part in high-risk activities, for example sky-diving or motor racing, you should make the effort to find out whether an accident that results in death during such pursuits would make your life insurance policy invalid. If you are a lover of adventure sports, discuss with insurers prior to signing a contract whether or not you will still be covered.
Suicide is generally not a situation covered by insurers, and specifically not within the first two years of the policy being taken out. There may be a belief on the part of the insurance company that the coverage was purchased with suicide in mind as a way of ensuring funds are given to dependents early.
Acts of war are a gray area when it comes to cover. Not all companies will pay out if the policy holder dies as a result of being engaged in a military campaign. Of course, there are insurers who offer cover to serving military personnel, and who do pay out if they die when on duty, but the majority of providers are less likely to do so. If you are a member of the armed forces, it is essential that you choose your insurer carefully.
On a final note, if you were not to pay your life cover premium on agreed dates, the policy can be canceled. Never skip or delay a payment as this can result in a severe problem developing.
Article Source: http://EzineArticles.com/6666802