Life insurance + sacrifice = ??? PROFIT

[TopHatFox]

Random thought part II while non-sober with friends: what if a person purchases a million dollars worth of life insurance coverage, then proceeds to accidentally die under a common bullet of payout. Would the beneficiaries be rich, or in jail? Know of anyone that's ever tried it?

[jennypenny]

It doesn't have to be accidental. My life insurance covers suicide and it's a big policy. IIRC, there was a waiting period for that clause to take effect, maybe a year?

[TopHatFox]

IIRC, there was a waiting period for that clause to take affect, maybe a year?

Not a bad ROI for only a year. I suppose the problem is the "investment" takes you with it. Dang, capitalism commodifies suicide & life too.

[BRUTE]

at least in capitalism, you can GET suicide. way too many shortages under communism.

[Kriegsspiel]

It doesn't have to be accidental. My life insurance covers suicide and it's a big policy. IIRC, there was a waiting period for that clause to take effect, maybe a year?

Why would any insurance company offer suicide INSURANCE? Wouldn't the only people that buy a policy with a suicide payout be people who are considering suicide, since otherwise it's a massive, totally avoidable expense? Are you feeling ok?

[jennypenny]

I've been on the forum long enough for everyone to know how 'ok' I am.

There are legit reasons to add that rider to your policy. A family history of mental illness is one. Or maybe you're the type of person who would end their own life instead of suffering through endless chemo or a debilitating disease (think Robin Williams). Suicide rates are high in cancer patients.

If you don't have that rider, you'd have to see it through to the bitter end for your family to collect the life insurance, and the resulting medical bills might then eat up most of what they'd get.

[Dragline]

It doesn't have to be accidental. My life insurance covers suicide and it's a big policy. IIRC, there was a waiting period for that clause to take effect, maybe a year?

Why would any insurance company offer suicide INSURANCE? Wouldn't the only people that buy a policy with a suicide payout be people who are considering suicide, since otherwise it's a massive, totally avoidable expense? Are you feeling ok?

A couple reasons. First, most people won't do it and actuaries can easily calculate suicide rates and match premiums to cover them.

Second, the costs of investigating these kinds of deaths, which often occur due to overdoses, would be relatively expensive. It's easier for the company to adjust premiums after a waiting period to account for suicides than employ more forensic investigators.

For a great movie/story about the whole "underbelly" of life insurance and insurance investigations, go watch the film noir classic "Double Indemnity" if you haven't ever seen it.

[Chris]

Wouldn't the only people that buy a policy with a suicide payout be people who are considering suicide, since otherwise it's a massive, totally avoidable expense?

You don't need to have committed suicide, but have it assumed you committed suicide. If I got knocked off by some Soviet spy (likely), and the killing was staged to look like a suicide, I'd still want my life insurance to pay out to my family.

[ether]

It happens!
Some people take it a step further, fake their death (missing in the woods anyone) and name their new identify as the beneficiary