I've purchased a guarentee issue life insurance policy for a family member with a chronic illness. The policy is only payable after 2 years. The premium is $61 a month or $645 a year. I'm wondering if I pay 2 years premium now, will the policy be payable. I was too afraid to ask the agent.
2007-11-22 05:59:19 · 7 answers · asked by stlsigma2 1 in Business & Finance ➔ Insurance
No, if you pay the two years premium you just won't have any payments for two years. The policy is not payable for any reason before two years. This is how the company can make some money before the chances of paying out.
If the insured were to pass away before the two year period you should get your premium returned.
2007-11-22 06:21:04 · answer #1 · answered by Zarnev 7 · 1⤊ 0⤋
Once the life insurance policy is issued, it is payable upon the death of the insured, subject to any exclusions, such as, suicide.
However, the full coverage does not take effect until two years after the date the life insurance policy became effective.
There are usually limited benefits on these policies the first two years.
You may want to contact your agent and ask for a complete explanation as the the payout for death in the first year, and death during the second year of the policy.
After two full years in effect, the policy should pay out the full 100% of the life insurance coverage.
I hope that helps!
2007-11-23 00:24:56 · answer #2 · answered by Anonymous · 0⤊ 0⤋
No the two years exclusion is so people in there final days don't buy the insurance knowing it will be paid soon. Why else wouldn't everyone expecting to die go pay 2 years premium and collect more than that a few months later?
2007-11-22 06:46:11 · answer #3 · answered by shipwreck 7 · 0⤊ 0⤋
If this grew to become into term coverage, it grew to become into to be paid twelve months by potential of twelve months. each and each each year top type protecting the coverage in place for yet another twelve months. So, permit's drop the notice "term." i think it is classed as "constrained-pay" coverage. (this is a version of entire existence coverage.) A constrained-pay existence coverage is one wherein the quotes are paid over a particular era and then no further quotes are due. it is 10 years (or greater) of quotes. whether, it would not inevitably pay to any extent further than the face fee of $500 except there grew to become into some dividend reinvestments occurring. money values earlier dying seem to max out at 80%. My dad had one among those. After he died, i stumbled on the letter from 30 years earlier that each and all of the quotes were paid and he'd have the coverage for existence. I by no potential found out what the face fee grew to become into, so i can not permit you already know if the verify we've been given grew to become into greater or not. Dad had forgotten he even had the coverage.
2016-10-02 03:39:21 · answer #4 · answered by ioannidis 4 · 0⤊ 0⤋
If you stated the full medical history on the application, then guaranteed issued coverage pays upon death at anytime. If however it could be shown you failed to admit information on the application, then within the first 2 years they wouls at the very least return all the premium paid plus interest to the beneficiery. .
2007-11-22 09:20:57 · answer #5 · answered by Michael F 3 · 0⤊ 0⤋
No. The death has to occur two full years after the policy starts.
2007-11-22 06:37:13 · answer #6 · answered by Anonymous 7 · 0⤊ 0⤋
We don't know what the policy states, or even if it was issued in this country. Read the policy.
2007-11-23 10:41:10 · answer #7 · answered by Venita Peyton 6 · 0⤊ 0⤋