Life insurance policies are extremely beneficial protection to have in
the event something were to happen to you in the future. However, it’s
always surprising to learn just how many people are unaware of what is
and is not actually covered. This could lead to a nasty shock in the event
your loved ones try to file a claim for them in the future. Want to avoid
one of these unpleasant surprises? Here are just a few things that aren’t
most* life insurance policies.
This may confuse a few people because some life insurance companies offer
policies which also include mortgage insurance. This benefit is designed
to help your loved ones pay off their existing mortgage without having
to worry about using the benefits from the policy lump sum. Some policies
include this term, but the vast majority do not. Talk to your life insurance
company or broker to learn whether this is an option that’s available to you.
Disability or Critical Illness
Life insurance policies only become payable upon the passing of the policy
holder, not when they become critically ill or permanently injured. Critical
illness insurance and disability insurance do exist and both are fairly
good ideas if you work in a dangerous profession. However, your life insurance
policy will not pay benefits to you in the event you sustain one of these
The majority of policies do not pay out benefits if you choose to end your
own life. While it is possible to purchase a clause that allows some benefits
to be paid out if the policy is at least two years old, your company won’t
pay out benefits if you commit suicide. It’s important to remember
that most suicidal feelings are temporary, and you should seek help immediately
if you’re having these types of thoughts.
Do you enjoy racing cars? Skydiving? Rock climbing? These are all activities
which, while thrilling and enjoyable, could be classified as a massive,
unnecessary risk to your health and well-being, and therefore considered
“reckless endangerment.” Many activities that fall under this
umbrella will disqualify a life insurance claim if they cause the death
of the policy holder.
Make sure your policy is right for you!
Call Insurance Specialists, Inc. today at (888) 451-0883 to speak with a skilled Atlanta insurance administrator
on our team.
*What is and is not covered under your exact policy will depend entirely
on its terms. Talk to your company or insurance broke to learn more about
your specific case.