Watch For These Other Risks

You could be investing in a policy with special risks if . . .

  • the policy is still in the "contestable" period. This means a life policy is less than two years old, and the insurance company could refuse to pay the death benefit for various reasons.

  • it is a "term" life policy issued for a certain number of years. An insurance company will not pay the death benefit if the insured outlives the term period of the policy.

  • it is a "group" policy which is usually owned by an employer or other organization. A group policy can be terminated by the employer or the insurance company and there may be higher premiums or limits on the insured's rights to convert to an individual policy.






 
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