Generally a life insurance company will have to pay a death benefit once the contestability period of two years has passed.
Policies may have certain exclusions, such as suicide or death while committing a felony, but these will appear in the contract language.
Even if it turns out that an insured person lied about smoking or their age, the insurance company will have to pay a death benefit that will simply be reduced to account for the premiums paid and what should have been the correct risk rating for the person. Most life insurance will pay out a death claim if death occurs for any reason after the contestability period has passed.
The purpose of the contestability period is to allow life insurance companies to prove that a person fraudulently represented themselves on the application and hid important information from underwriters. Contesting a claim mean paying legal fees, generally, and many life insurers have no interest in spending money on taking beneficiaries to court. This hurts their reputation and decreases future sales revenue.
The NASDAQ is an electronic marketplace for trading stocks, and is also used to track major Technology stocks
The Efficient Market Hypothesis (EMH) states that it is impossible to beat the market consistently over time
Market Capitalization refers to the total ‘market-size’ of a company, calculated by the number of shares outstanding...
A rate swap is an over-the-counter contract between two institutions to trade the cash flows on two principal amounts
Revenue that has not yet been received for goods or services already rendered may be documented as Accrued Revenue
If a central bank takes actions that intentionally affect the value of a currency it is Foreign Exchange Intervention
Form 706 is the Estate Tax return, and it has a section concerning Generation-Skipping Transfers. 706 GS (d) specifically
A suitability standard has been advocated by various consumer lobbying groups and legislators, but it does not exist
A life estate is often created by an older parent when they sign over the house to their adult children
An individual can automatically have their tax return due date extended by 6 months by filing a Form 4868