99 Reasons Life Insurance Won’t Pay Out

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97% of all life insurance policies are paid out in full.

Ninety-seven percent!

So, what about that remaining 3%? What are all the reasons that the life insurance companies come up with to make sure they can get away with keeping the money? Are there really 99 reasons?

No!

Actually, there’s just ONE!

The ONLY reason your life insurance policy won’t pay out

If you (the policy-holder) lied.

That’s it. The single reason that a life insurance company will refuse to pay is in a case of fraud - if the policy-holder lied when they applied for life cover.

It is typically on the initial application for life insurance where people might lie – the policy-holder might have said they didn’t smoke, when actually, they pack away 40 fags a day (or even just vape socially once a month!) - they didn’t mention that they regularly go skydiving, live in Norway, or they said they were 21 when really, they're 51.

Of course, there are more complicated cases, where a policy-holder hasn’t really died but is living it up in the Bahamas. They’re rare, but they happen!

Some FAQs and myth-busting on life insurance payouts

How do life insurance payouts work?

It is important you tell your loved ones that you have a life insurance policy in place so that they can contact the insurer and arrange to receive the payment. They will need the death certificate and the documentation regarding your policy but after that, things will be pretty smooth.

Can a life insurance company refuse to pay?

They can. If they believe there has been a case of fraud either in the initial application or later, then they will investigate the situation. 97% of policies are paid immediately, however.

Does life insurance pay out if you don’t die?

Some life insurance policies come with an added Critical Illness Cover policy (if you chose to have that extra cover) to pay out should you become seriously ill or injured (with a specified illness or injury). Read our guide on Critical Illness Cover for more information.

Can you get your life insurance money back?

No. Once a premium is paid, the life insurance company cover you for another month in return. You cannot request a refund on premiums.

How much does life insurance pay out?

Your life insurance will pay out whatever the policy is set to – this is an amount that you agree on at the start. If you have a decreasing term insurance policy, then this amount will lower over the length of the policy (as it is generally used to cover a mortgage). A level term life insurance policy is set.

Does life insurance pay out if you commit suicide?

Most life insurance policies will pay out for suicide after the first year of the policy term. During the first year, suicide is exempt from payment to avoid obvious cases of desperation but after this period, suicide is treated like any other cause of death.

Does life insurance pay out if you die of cancer?

Yes. Life insurance policies are there to protect your family should you suffer a devastating condition such as cancer.

You may find it difficult to get a policy if you are already suffering cancer or had a previous history of the disease, but we can help you find the right level of insurance to suit you.

How do I get life insurance?

Give us a call at Quick Quote Protect today or fill in our contact form to have someone call you back at a time convenient to you. We’ll be able to get you a cheap life insurance quote immediately!