Suppose you pay for Whole Life Insurance all your life and die of Natural cause when you are old like 80….Does your family gets any payout if you die of Natural Causes? Or does all that moeny goes to waste?
UPDATE:
Since some people are finding the post confusing, I'm writing clarification
I was under impression for a long time that your beneficiary will only gets payout if you die by some accident. And if you die of old age, than all that money paid for premium for years is wasted… But recently I saw some online post saying that your beneficiary also gets payout if you die of old age. I wants to know if thats true?
Does your family gets life insurance payout if you die of Natural Causes?
byu/gandhrav1 inInsurance
Posted by gandhrav1
5 Comments
Iuness it’s some weird contract you should get it
Can we get a baseline by you telling us specifically what you think life insurance covers?
Whomever you declare as your beneficiary gets it. Don’t understand the question.
There are instances when it will not:
Guaranteed issue less than two years in (you get your money back)
Cause of death related to fraudulent information on application within contestability period
Quit job due to health issues with policy that isn’t portable so it goes out of force
Term policy or universal life policy that terminates at age 75/85/95 etc… and you outlive it
What you might be thinking of is an Accidental Death & Dismemberment (AD&D) policy. These are very inexpensive because they only pay out in certain circumstances.
OP. Not a direct answer to your question, but I highly recommend finding a reputable life insurance agent. These are really basic questions and can be answer clearly during a 10 minute call.
Please keep in mind that these are NOT bad questions. There is so much misinformation with life insurance (all insurance, really). Speaking with a real person will be helpful.