When you buy life insurance, there are different levels of protection that you can choose from. One of the most comprehensive and expensive levels of protection is an incontestable life insurance policy. According to Bill Schantz, this type of policy doesn’t have any conditions or limitations on it, which means that the insurer can’t deny a claim no matter what. While this may sound like a great option, there are some pros and cons to consider before deciding if it’s right for you. Here’s what you need to know about incontestable life insurance policies.
Bill Schantz Lists The Benefits Of An Incontestable Life Insurance Policy?
The main benefit of an incontestable life insurance policy, according to Bill Schantz, is that it offers peace of mind to policyholders who may be worried about their insurer challenging a claim. If you have an incontestable policy, you can be confident that your beneficiaries will receive the death benefit regardless of any misrepresentations or omissions made by you at the time of application.
Another benefit of an incontestable life insurance policy is that it can provide protection for your loved ones in the event of your untimely death. If you die suddenly, your beneficiaries will receive the death benefit from your policy, which can help them with expenses such as funeral costs and outstanding debts.
Bill Schantz Lists The Drawbacks Of An Incontestable Life Insurance Policy?
The main drawback of an incontestable life insurance policy is that it can be more expensive than a regular life insurance policy. This is because insurers view incontestable policies as a higher risk and thus charge higher premiums to offset this risk.
Another drawback of an incontestable life insurance policy is that it requires you to answer medical questions truthfully at the time of application. If you fail to disclose any relevant information, your beneficiaries may not be entitled to receive the death benefit if you die within the contestability period.
Finally, some incontestable life insurance policies have shorter terms than regular life insurance policies, says Bill Schantz. For example, some policies are only incontestable for two years, after which time the insurer can contest the policy on the basis of misrepresentation or omission.
Should You Purchase An Incontestable Life Insurance Policy?
Whether or not you should purchase an incontestable life insurance policy depends on your individual circumstances. If you’re concerned about your insurer challenging a claim, an incontestable policy may be a good option for you. However, if you’re healthy and have no history of medical conditions, you may be able to get by with a regular life insurance policy, which will be less expensive.
If you’re unsure whether an incontestable life insurance policy is right for you, it’s a good idea to speak with a financial advisor. A financial advisor can help you assess your needs and recommend the best type of policy for your situation.
Bill Schantz’s Concluding Thoughts
Incontestable life insurance policies provide security for the policyholder in the event that something happens to them and a claim is made. There are, however, some drawbacks to incontestable life insurance policies. One such drawback, according to Bill Schantz, is that these policies can be more expensive than other types of life insurance. In addition, if the policyholder commits suicide within two years of buying the policy, the insurer will not have to pay out any benefits.