Insurance question

[Alpo]

In the current murder mystery.

 

Early 60s. The husband has a $25,000 life insurance policy with a double indemnity for accidental death. And a suicide exclusion.

 

Since the insurance company does not wish to pay out $50,000, they are trying very hard to get the death rule to suicide.

 

The widow is telling a friend that if the insurance company decides it was suicide, they will not pay the $50,000, but will instead just return the premiums that had been paid.

 

Return the premiums? Really? I've never heard of such a thing . In my experience, insurance companies are money grubbing bastages, who once they get their hands on your money will never ever ever let it go.

 

Anybody work for an insurance company, and have actual knowledge of what they would do if someone suicided with a suicide exclusion on their life insurance?

[Jabez Cowboy,SASS # 50129]

Most Suicide Exclusions are not in affect after 2- 5 years up here in Canada after the time is lapsed they are required to be paid out like any other death ...

 

Jabez Cowboy 

[Alpo]

In this story it was for two years, and he'd only bought the policy 6 months ago, and it turns out it was murder anyhow so they had to pay.

 

It was that, "return the premiums we'd paid" part that was throwing me.

[MizPete]

I was in property/casualty insurance & have no knowledge of return premiums.

[Red Gauntlet , SASS 60619]

I did a fair amount of insurance work in law practice over the years, and I never heard of returning a premium under such circumstances, because the policy was in force; the exclusion was an inherent limitation of coverage. Indeed, I would think it unwise of the insurance company to return it. It would thereby create confusion, which often works against insurance companies.

 

Those cases are indeed most often found in mystery novels, because in the real world, in most states, life policies are incontestable after 2 or 3 years, and suicide exclusions expire by statute most places in that time frame.

 

The idea being that you can't buy a life policy in contemplation of suicide. Unless, of course, you're really planning ahead!

[Alpo]

Would murder be considered an accidental death?

 

The guy was found in the garage, in the car, with the garage door down, and the switch on, and the gas tank empty. And a pint of vodka in his system. So the question was did he suicide, or did he pass out drunk and accidentally die.

 

Turned out that he had passed out drunk, and a third party drove the car into the garage and shut the door, which made it murder.

 

Now if he had suicided, the widow would get nothing. If he had killed himself accidentally because he was drunk, the widow would get 50K. But since the third party killed him, would that be considered accidental so she got 50K, or just the 25k the policy was made out for?

[J. Mark Flint #31954 LIFE]

If the return of the premiums is accepted by the beneficiary, it is likely a waiver of claims under the policy.  Yes it is occasionally done on policies that are not "ripe"  If it is offered to you, do not take it without the advice of a local attorney.

[Trigger Mike]

Also, life insurance usually matures at age 100 and no longer pays, so I have heard that if you live that long you can get your premium back.   It rarely happens though because over 80% of term life policies holders stop paying their premiums after 5 years.  

[Trailrider #896]

Like some guy back in the 60's who got in trouble with somebody.  He was pronounced dead by suicide...with three bullets in the back of his head!

[Red Gauntlet , SASS 60619]

My partially-informed expectation is that with respect to a life policy, a murder would be regarded as accidental from the standpoint of the insured. Sort of like if he was attacked by a tiger-- the tiger's intent would be irrelevant. So there would be coverage. But don't take my word for it before you go into tiger country.