In life assurance is there a penalty for not ?

Question

dying within an alloted time ?

Answer 1

If you die after the policy expires, it doesn't pay.  Is that what you mean?

Answer 2

LOL ... no!  If there is a set term on the policy and you are still alive at that date, then you get the payout anyway.  If you died before that date then your next of kin would have got the payout.  If there's no set term, then it just pays out when you die.

Answer 3

Obviously, you mean life insurance, not assurance.

In my state there is a two-year contestable period on any life insurance contract. This means that if the insured dies during the first two contract years, the company will investigate. If the insured had made misrepresentations on the application that would have declined the policy, or caused the policy premium to be rated up, the company can decline payment, or pay only the amount that the premium which was paid had purchased, if the policy would have been rated up. Also, the policy would not cover suicide in the first two policy years.

After the first two policy years, the company cannot decline payment, unless fraud was suspected and proven. But more than likely this would not happen. In this case and the cases above, all premiums that were paid on the policy would be refunded to the beneficiary.

If the insured had a term policy, and the term period had expired, and death occurred afterward, no benefit would be paid to the beneficiary.

If the policy was a whole life, or limited pay life (10-pay, 20-pay, etc.) the policy would be payable at death, or at age 100, whichever occurs first.

Note: Cari's answer above is wrong.