T2-L1-P16

Accelerated Death Benefit

Most modern contracts now permit an insured owner to receive a portion of the death benefit when facing certain death due to an incurable disease. This has to be verified by the medical provider. The benefit can also be used for final nursing home expense. It is normally limited to 75% of the policy face value. It is also subject to strict IRS approval and is limited to a maximum amount per day without taxation.

Suicide Provision

Most policies and most State Laws state that a person who commits suicide must do so beyond two years after the issue of the policy for the benefit to be paid. This is to prohibit people who have that intent from buying a policy and then disposing of themselves. The assumption is that after two years, they will have overcome any contemplation of suicide.

If a person does commit suicide during the two-year period, the death benefit will not be paid. The insurance company will rescind the contract and return premiums that have been paid. They will not pay any interest.