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When you purchase Mortgage Protection Insurance, it provides a death benefit to your family when you die. But it doesn't necessarily provide a death benefit for every circumstance that results in the death of the insured on the Mortgage Protection Insurance policy.
During the first two years that the Mortgage Protection Insurance policy is in-force, no death benefit is paid if the death of the insured is the result of suicide. This may seem unfair; after all, it's not the beneficiary's fault if suicide is the reason behind an insured's death. But because Mortgage Protection Insurance is meant to guard against the unexpected death, a planned event that causes death would have resulted in a denial of the policy had it been disclosed on the application. That gives the insurance company the right to deny the claim.
If suicide is the suspected cause of death for an insured that you are a beneficiary of, expect a full investigation by the insurance company and do not anticipate the immediate release of the death benefit.
|Jennifer Mathes, Ph.D.|