For those who think money is everything

[Island Son]

From a buddy at an insurance company
===================================

I heard today in a meeting that we had a policyholder who had a policy in excess of $20m. Based on insurance law, we can't insure somebody for more that they are likely to earn in their lifetime.

Long and short is he is loaded. His estate must be in the multiple
millions. He and wife were having problems so he attempted suicide once (unsuccessfully).
His second attempt at suicide was a success.

She must have been a really special lady for him to kill himself.
And in a twist of irony she is now $20m richer.

 

[KJIGGA]

insurance usually doesnt pay out if soemone offs themself

 

[Warik]

What does this have to do with people who think money is everything?

And life insurance doesn't pay for suicide to the best of my knowledge.

-Warik

 

[spentagn]

There is a certain period (usually a year I think) where life insurance won't pay for suicide. After that, get the fuck out.

 

[manny78]

Under our laws here (in most provinces), insurance aren't under any obligation to pay for suicide during the first year of the contract. After they MUST.

 

[T-800]

"For those who think money is everything"

true, not everything, but have fun living without it.

 

[Bigsatan13]

Nav, you get paid for suicide after 2 years. I just changed insurance companies so it's fresh info. But I think you should not be worth more dead then alive so she wont be "making it look like a suicide" any time soon.

 

[Baby Gorilla]

It does pay....

The suicide exemption (2 years) is there to prevent people who buy insurance to pay out when they off themselves from prospering anytime soon. However, suicide is classified as the result of a mental disorder/illness, so they have to eventually pay off when people kill themselves.

If you are mentally unstable and buy life insurance because you plan to kill yourself, you won't wait the required 2 years to make them pay. If you could plan it out that well, people are likely to know you are at risk and get you help--or you'd ask for help yourself.

If you buy insurance while of sound mind and near the end of 2 years become depressed then off yourself right after the 2 years are up, the beneficiary doesn't get screwed because a "sickness" took your life.

I thought it was odd to hear that your max life insurance value is based on you expected income over your lifetime. Considering premiums are based on your age and placement on the mortality tables, you should be able to buy as much as you can afford to pay premiums on.