It is important to read the document, find the exclusions and discover the loopholes that could render life insurance worthless.
The most common mistake people make when it comes to life insurance is being dishonest to get a lower rate. An insurance company can cancel your policy and deny your claim if they find out you lied on your application.
This could be about the year, month or even day of your birth as well as health conditions. It usually doesn’t even matter if the way you died has nothing to do with the lie you used. Be assured, insurance companies will thotoughly investigate any claim made before paying out.
There are several other technicalities that can render your life insurance policy useless. Usually, the suicide clause specifies that a company does not need to pay out death benefits for anyone who brings about their own death during the first two years of coverage. Some companies refund your beneficiaries the premium payments you made until the time of your death.
There are many reasons that you might need life insurance but if you don’t it can be a waste.
Source :- USA TOday