Life Insurance For Seniors-New Financial Approaches

“Let he who is without sin, cast the first stone“.

Ok, I’m guilty. I have sinned. That said, I was reading an article about life insurance in Colorado and lo and behold I came across the following:

Colorado Law and the Two-Year Rule in Life Insurance Policies

Unlike the two-year rule, Colorado law does not require the one-year rule to be specifically stated in the insurance policy. In fact, the insurance policy typically says just the opposite. For example, the policy may say that the death benefit will not be paid if the insured commits suicide within two years of the policy issue date. Then, when a suicide does occur within that two-year window, the insurance company denies coverage making specific reference to the two-year suicide exclusion in the policy. At that point, most beneficiaries give up. It’s in the contract so it must be so? Right? Wrong! I have seen this scenario on several occasions. Even when directly confronted with the written law, insurance companies will still balk at making payment. However, with a little lawyerly persuasion, the insurance company will pay the full death benefit.

To coin a phrase; say what? Ok. The two year rule is in the contract but the one year rule isn’t. Hmmm…..do you think any legislators know about this? You decide.

Could you just imagine if this neglect was happening in the senior life insurance market?

Thank goodness for your elected officials.