What is not covered in my life policy?
The answer to this question varies from policy to policy. The most important thing to understand is what life insurance is. Life insurance is meant to provide a lump sum to your beneficiaries in the event of your death from natural causes and most diseases. There are some circumstances under which policy benefits are not payable, and some things that they don’t cover.
Life policies are generally paid out in lump sums. Your mortgage can be covered separately through mortgage insurance. Mortgage coverage through life insurance is much better than coverage through your mortgage lender for a number of reasons, not least of which is the fact that our insurance is designed to cover you and not your lender.
While the lump sums paid out by a life policy can be used to pay off a mortgage, mortgage insurance allows you to remove this expense from the equation and focus on more immediate needs.
Disability and Critical Illness
You can purchase critical illness insurance separately. Life insurance benefits are only payable on the death of the policy holder.
While some life insurance policies have a suicide clause that allows for payment of benefits after the policy is over two years old, not all policies have this clause.
You can help prevent suicide. Many people find that their suicidal feelings are temporary, so helping them get through the immediate crisis can stop a suicide attempt. People who have struggled with suicidal thoughts, and even those who’ve attempted suicide, can and do recover and go on to lead full and active lives. Here are some helpful resources for people with suicidal thoughts and feelings.
Exclusions are situations in which the insurer will not pay out benefits. Suicide is one of the more common exclusions on life policies, but you will also see things like reckless endangerment on there as well. This means if you die racing a car, your beneficiary may not receive benefits.
If you are concerned about what is covered under your life insurance, contact your Financial Advisor and ask them about your specific concerns.