My friend has a term life insurance policy that is less than 2 years old. She entered the hospital recently for a newly diagnosed bipolar disorder and had admitted to thoughts of suicide. Within 2 months of her stay and diagnosis, her term life insurance policy was canceled by the insurance company for reasons of risk. Can they legally do this? I read the policy, but am unclear whether they have the right to do this. Thanks.
4 Comments Already
April 2nd, 2010 @6:14 am
Yes, they have the right to do this.
April 2nd, 2010 @7:04 am
Most state they have that right in the policy.
April 2nd, 2010 @7:48 am
Yes, they can. But, I don’t know why they would for the “thoughts of suicide”. I have never heard of a life insurance policy that pays out for suicide.
Most Life Insurance contracts have a two year “contestable” period. Any suicide during the first two year period will result in a refund of the premiums paid and no death benefit paid. After the policy has been in force for two years, a death benefit will be paid even in cases of suicide. Try this site to find the best life insurance
http://best-life-insurance-usa.blogspot.com/
Here you can get quotes from different life insurance companies in your area, its the best way to find an affordable life insurance with a reliable company.