If something happens and you pass away unexpectedly, life insurance provides the financial resources your family needs to begin rebuilding their lives without you. Many people assume that these policies only cover deaths in certain situations, but the truth is that your family will almost always receive the benefits you paid for regardless of the circumstances of your passing. Below are a few facts you should know about qualifying for death benefits.

When Life Insurance May Deny a Claim

The Two-Year Contestability Period

Within the first two years, your insurer may reserve the right to launch an investigation if they suspect your policy was based on fraudulent information or your death was ruled a suicide. This provision is designed to keep people who know that they’ll likely pass away within a few months from buying insurance after they receive a diagnosis. After reviewing your autopsy report, interviewing family and friends, and examining your medical records, they may deny your claim if they decide you misrepresented facts when you first applied for coverage.

Life Insurance in Suicide or Criminal Cases

There are common misconceptions that life insurance companies will deny claims if the policyholders pass away as a result of suicide or while committing a crime. However, as long as the death occurs after the contestability period, the insurer may not punish your beneficiaries by denying your claim.

Deaths Resulting From Dangerous Activities

Insurance companies base your premiums on your level of risk, which is higher if you enjoy dangerous hobbies. Those who participate in bungee jumping, parachuting, or scuba diving should tell their insurer when they initially apply for coverage. Otherwise, your family’s claim may be denied if you pass away in an accident, unless you died trying it for the first time.

Navigating the insurance industry can be complex, but the experienced professionals at David R Johnson Insurance will provide expert guidance and the coverage you need. As part of the State Farm® family, they’re committed to helping people throughout Beech Grove, IN, manage the risks of everyday life, recover from the unexpected, and realize their dreams. Visit their website to learn more about their life insurance options, get more tips on Facebook, and call (317) 782-8858 to request a quote today.