It could take days, weeks, or months.
Why ask how quickly coverage begins if the insured is perfectly healthy and of sound mind?
Certain policies may have specific exclusions, such as death while committing a crime, but these are separate from the contestability period.Criminal Activity, nearly every life insurance contract contains language stipulating that your policy would be considered void if death occurs as the result of your participation in criminal activity.The secret to finding the lowest rate is to apply at the company that views your unique situation in the best light.Premium paid after policy issuance.For instance, in New York a medical malpractice action, in most circumstances, must be commenced within two-and-a-half years after the wrongful act.Things like smoking, using other tobacco products, or participation in dangerous hobbies will lead to higher premiums to account for the increased risk.In the Nineteenth century, life insurance applications requested voluminous disclosures about myriad conditions to set up a material misrepresentation argument.When you went through the application process, the underwriters will have reviewed your medical records.This is for the simple reason that if someone gift card bin coupon code is planning to end their life, they cant just go out and buy a policy the week before.Any insurance company that began coverage immediately without suicide contestability period would quickly go out of business.Another argument why contestability periods are not unfair, and are similar to a statute of limitations, is that most all misrepresentations are knowable to the insurer at or before when the policy is issued.
This would obviously be very BAD news for your beneficiaries.
The two-year contestability period exists to protect insurance companies from financial loss.
Someone could complete an application for coverage and pass away while the insurance company is still performing its due diligence.
Term Life Suicide Contestability Periods, life insurance companies include suicide contestability periods to protect themselves from intentional acts.Term Life Insurance Start Date Definitions.A suicidal policyholder's heirs would receive no benefit from the insured's actions.Also, the applicants health can change before the policy is issued.The nature of the questionsalong with sharp insurance sales practicesled to misunderstanding and misrepresentation.