Occasionally, the reply is yes. The trouble starts with a few words referred to as "an exclusion" which may be seen in an existence insurance contract. An exclusion is often a circumstance -- such as a particular cause of death or even an allegation of fraud -- that invalidates a claim.
How likely would it be your heirs will end up in court fighting for your benefit you're investing in now?
People who work in the marketplace insist it's relatively rare for lifetime insurance companies to address death claims.
"When the applicant does what's right, then the insurance company will do it. It's not just a bait and switch it's not something they're attempting to avoid," says Rich Fuller, owner of Special Risk Services, an insurance agency in Littleton, Colo.
However, other medication is not sure. For instance, Joseph Belth, professor emeritus of insurance at Indiana University in Bloomington, says some insurance agencies routinely resist paying claims that happen within the first couple of years following a policy is written.
"Most of (the claims they resist) are small policies and also the people are not able to mount an actual battle," says Belth, who also edits The Insurance Coverage Forum.
"There's really not enough money involved to interest a lawyer in enabling into it, so (the beneficiaries) aren't really in a position to fight it."
2 big exclusions
Exclusions are not as prevalent while they used to be. Before, many insurance coverage contracts contained exclusions for deaths on account of acts of war, commissions of felony as well as participation in riots.
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