Can I use a life insurance policy that is new and was issued less than two years ago to pay for funeral expenses?

Once the insurance company issues you a life insurance policy you are in fact covered. What the agent didn't explain to you is the Incontestability period. For deaths that occur within a two or three-year period after a new policy, the insurance company has a right to review the original application for insurance and all medical records of the deceased. This can often take months. After that the company will decide whether to pay the full death benefit, a reduced death benefit, or if they will pay any benefit at all depending on what facts they found during their investigation. The incontestability period is necessary, otherwise people would only get insurance when they got sick "just in case" and insurance companies would go bankrupt paying out $10,000 policies after only collecting a few hundred dollars in premiums. Question #12The beneficiary on the life insurance policy I want to use is not coming to the funeral or is deceased or is unwilling to assign their benefit over to the ...  more

Once the insurance company issues you a life insurance policy you are in fact covered. What the agent didn't explain to you is the Incontestability period. For deaths that occur within a two or three-year period after a new policy, the insurance company has a right to review the original application for insurance and all medical records of the deceased. This can often take months. After that the company will decide whether to pay the full death benefit, a reduced death benefit, or if they will pay any benefit at all depending on what facts they found during their investigation. The incontestability period is necessary, otherwise people would only get insurance when they got sick "just in case" and insurance companies would go bankrupt paying out $10,000 policies after only collecting a few hundred dollars in premiums. Question #13The beneficiary on the life insurance policy I want to use is not coming to the funeral or is deceased or is unwilling to assign their benefit over to the ...  more