Hello, this is Chad McMahan with Protect With Insurance, this is another video blog episode as part of the series this one is on. Does mortgage protection pay for suicide? This is one of those topics that a lot of people are nervous about asking.
They don’t want to give the wrong impression, but it’s something that we all kind of wonder and there aren’t a lot of great resources for it anywhere that you can find. So let me explain this and I’ll make it as short and sweet as possible. I’m going to try and keep this under two minutes. The short answer is. Not really, but there’s a much better answer than that because there are many cases where insurance companies pay out mortgage protection policies payout if suicide has occurred.
So the first two years of any new life insurance structured policy and mortgage protection is life insurance. It’s term life insurance, structured any life insurance structured policy. In the first two years, the insurance company, also known as the carrier, has the legal right to go back through and see if everything was answered truthfully and honestly if everything was fully disclosed in the application. So when there is a suicide, they’re going to go back through there and they’re going to say it was everything done perfectly, honestly, and correctly.
And suicide is one of those things where it’s it’s intentional deception and fraud of death, OK? And I know that it’s again, it’s a very sensitive topic. But in the first two years, if there is a suicide that occurs, they’re going to do anything and everything to get out of paying that because it’s a deceptive payment. And once you get past those two years, they need to pay for any death. So that is the best answer I can give.
However, there are insurance carriers. This is very, very important. There are programs and insurance carriers that have fine print in there that says that any intentional self-inflicted harm that includes suicide, that they will not pay for, that can not be intentionally self-inflicted. So if this is something you’re concerned about, maybe your spouse has it and you’re worried about them or something like that, then you need to talk with your agent.
You need to if you have an attorney, have them look over your policy. You can talk with your insurance carrier and you can ask them if they have anything like that built-in there, just out of concern. It won’t jeopardize your policy to ask questions like that. Once you start a policy, as long as you keep making payments on it, then they’re on the hook for the policy. They can’t drop it. Only you can. So any other questions on that?
Please just reach out to us. Mortgage protection is super, super important. And we want to make sure that you guys are covered and your families are protected. So this is Chad McMahon and I’m out of here. Stay safe.
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