New answer on: What Will Void A Life Insurance Policy?

By: David Pipes

David Pipes — Tue, 27 May 2014 15:53:32 +0000

When a person applies for life insurance they make “representations.” The company issues the policy on these statements. If the person makes false “representations” the company has some recourse to refuse coverage normally for a limited time. If the person commits suicide in the first two years, most companies will refuse coverage. When a life insurance company refuses coverage they return the premiums paid.

By: David Racich

David Racich — Wed, 22 May 2013 02:57:00 +0000

There are a couple of reasons why a life insurance policy would be declared void by the issuing company. During the first two years of contestability, suicide of the insured and fraud discovery can void the policy. And with some states and life insurance companies fraud may extend for a longer period.

By: Larry Gilmore

Larry Gilmore — Wed, 22 May 2013 01:57:27 +0000

what will void a life insurance policy? Basically any deciet given during the application process will void a policy if found out within the first two policy years. After that, in most cases contestability by an insurance carrier has ended. Except some states have modified contestibility laws sometimes in the insurance company's favor. In my state, concerning lying about smoking on the application, there is no limit for an insurance company to contest. The state considers the policy null and void. Other states may have something similar.

By: Ted Ratliff

Ted Ratliff — Tue, 21 May 2013 18:51:16 +0000

If a person lies on an application the policy will be rescinded and premiums paid refunded. For example, if you have sound reason to believe that you have cancer. Even though it hasn't yet been diagnosed, if the company finds out or you die within two years the policy will not pay.

By: Jerry Vanderzanden, CLU, ChFC

Jerry Vanderzanden, CLU, ChFC — Tue, 21 May 2013 17:50:50 +0000

Generally, a policy may be considered void in the event of fraud. There have been many well publicized instances in recent years of insurance fraud concerning stranger owned life insurance transactions. Life insurance companies have been able to rescind coverage and the cases end up in the courts eventually. These situations are rare but they have been known to occur.