Life Insurance and the Death Penalty

[padthaiforlunch]

Well there you go, sell non-med term to those in the waiting room. Just make sure they are early in the appeals process, so you can avoid those chargebacks!

Life insurance policies will not pay out if the death occurs during the commission of an illegal act, right? So if Mr. Insured is robbing a liquor store and gets blown away by Angry Owner, there's no payout. Right?

Okay, now what if Mr. Insured succeeds in knocking over the liquor store and manages to kill, oh, eight people in the process. He escaped unscathed, but is arrested, tried, and convicted shortly thereafter. He's sentenced to death.

Assuming that someone on the outside keeps his premiums in force, and the policy is in good standing at the time of execution, will the policy pay out? I wouldn't think so - I'd assume that this falls under death as a result of commission of an illegal act. But what do you think?

There is absolutely nothing within the policy that would prevent payout. I just went through a nyl wl policy to be sure. Just proof of death.

No provision anywhere to be found that requires someone to be a good fellow to own a policy and have it payout.

 

[Guest]

O.K. I must really be sick. I realize this has nothing to do with the thread, but, I see the headline

"LIFE INSURANCE AND THE DEATH PENALTY!"

as just that, a headline for a direct mail piece.


Then the piece would go on to capture Interest by talking about the death penalty and how it's happened to everyone, all the time, throughout history and that no one can escape it including yourself.

Then creating Desire by you having to qualify and finally

Action by calling now before you can't qulaify.

A great headline!!!

 

[SportsNut]

This could be part of the reason why you keep seeing that question on life appls; In the past 10 yrs have you been convicted of a felony, or have any pending charges for a Felony...?

This would lead one to believe that there is a connection between illegal and/or immoral behavior and life span.

 

[Crown180]

Would review your policies but I doubt after the contestable period has expired, you will find any language stating not payable during a crime, etc. Could make for some interesting Life Settlement sales!!
With the exception of Accidental Death Benefits / Waiver Riders.