The life insurance contract with a decease clause

The complete life assurance providing businesses usually have different packages for their clients, but all of them must contain a clause for the decease of the insured person. In other words, the family of the insured person will receive an important sum of money in case the owner of the policy dies. However, the money will be given to the rightful beneficiaries only if certain conditions are met. Let’s see the exclusion clauses of the whole life insurance contracts (the cases when the insurance company will refuse the payments.

The suicide clause – f this event happened within the first two years of the contract, the insurance rates will be reimbursed to the beneficiaries. If the event happens at least three years after the beginning of the contract, the beneficiaries will also receive the incomes generated by the policy.

Besides the main beneficiary (the person entitled to compensations), a second beneficiary must be stated. This person will receive the compensations in case the main beneficiary is not able to claim those sums.

Contract options

The contract options can be stated in the contract, giving the possibility to the beneficiary to receive the compensations in other forms besides money. In case the owner of the contract wants to renounce it, there is the possibility for the beneficiary to become the owner of the policy in certain situations.

In a life insurance policy, besides the main clauses of the contract, several supplementary clauses might be introduced. Those clauses are called addendums to the base contract, having the purpose of offering additional benefits to the owner for some small extra sums. Those clauses are valid for any of the insurance policy, and they are added to the main contract considering the age of the insured person, but also his payment behavior during the latest period. In some cases, several other discounts might apply.