We get life insurance to protect our families. If we die, they have a nest egg.
But life insurance doesn't cover everything, according to Policy Genius. Among these:
* Lying. Your insurance application asks about risky hobbies, medical conditions and other behaviors. If you skydive every single week without telling your insurance company and then die in a skydiving accident, this is insurance fraud. Same thing with medical conditions. You can't take out an insurance policy and expect a payout if you only have three months to live. Don't lie.
* Murder by beneficiary. If the beneficiary of your insurance kills you, he or she won't get the payout. The benefit will go to the estate and will be shared.
* Suicide. Most policies have a clause that prevents payouts within two years of taking out the policy. After two years (or whatever period your policy specifies), insurance will pay.
Rick Good spent ten years in the newspaper business, including with The News & Observer (Raleigh, NC) and The Greenville News (Greenville, SC). He co-wrote, with Melinda Coleman, Rutledge to Riley: Governors of South Carolina, 1776–Present (Published by The Greenville News), and is the author of Mind Games Trivia #1 (Amazon). He has recently spent 15 years creating original trivia content through Sounds Good Mobile Entertainment and continues that with his new company, SGME Software. He edits The Smart Reader’s money, real estate, and business coverage.
