Life Insurance and the Death Penalty

[souldeux]

I have a dumbassed question, the answer to which provides me with absolutely no useful information. I am merely curious.

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?

 

[somarco]

Sounds like you need to upgrade your clientele. Have you been spending a lot of time at Mink's?

 

[padthaiforlunch]

In addition to the commission of a crime, the policy will likely exclude death while in prison.

 

[souldeux]

Sounds like you need to upgrade your clientele. Have you been spending a lot of time at Mink's?

I prefer Happy Charlie's right around the corner. They have AA meetings once a week in the upper level.

I didn't even think about that, padthai. Thanks!

 

[IndyAgentIDTMY]

If the Carrier is feeling generous, they may return a portion of the premium paid. Either way, I'm willing to bet a bottle of Johnnie Walker Blue that no insurance company in the US would pay out the death benefit in the situations you mentioned above.

If you find a company that will pay under these circumstances, send me documentation of this as well as your address. ONce I am able to verify, I will send you the JWB. Also, send me contracting documents for said Carrier and I will start developing my "waiting room pitch" for visitation days on Death Row.

 

[Bob_The_Insurance_Guy]

I always wondered who insured Blondie at The Clermont Lodge!

 

[Norwayguy]

If you find a company that will pay under these circumstances, send me documentation of this as well as your address. ONce I am able to verify, I will send you the JWB. Also, send me contracting documents for said Carrier and I will start developing my "waiting room pitch" for visitation days on Death Row.

I am not sure of the answer on the original question but in your example people in prison will not be able to qualify for a policy.

But the original question is interesting say I take out a GUL policy this year for I don't know a $1 Million and 4 years from now I commit a crime and am found guilty and sentenced to death...I need to read the policies more closely I guess....If I was asked this question right now..I would look the client in the face and ask "You planning on killing your life insurance agent?" then laugh it off.

 

[DJM]

If I was asked this question right now..I would look the client in the face and ask "You planning on killing your life insurance agent?" then laugh it off.

What would you do if he said yes?

 

[LGilmore]

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.

 

[Norwayguy]

What would you do if he said yes?

not turn my back on him till I was out the door and wish to god I had a concealed carry permit..