Life Insurance (Death)

[imalwayshappy]

Hi All,

On death cover is there a minimum waiting period before payout? This sounds like a really random and suspicious question but I assure you it is just a question!

Context: A colleague of mine's wife is 4 months pregnant and he wants her to take out life insurance in case anything happens to her during delivery so he would be in a better financial position to raise the child. Although it might be unlikely I think it is a prudent approach. If he takes out life cover i thought there is a waiting time of like 2 years or something but i could be wrong, I have told him to check with the provider just in case. Anyone shed some life on this?

Thanks

 

[Steven Barrett]

No, there is no waiting period, the cover is effective immediately.

Think of people buying houses, they need life cover as a requirement. Not much good if it isn't effective for 2 years and there's an early death.

Anyone with a new family should take out life cover. The cost of raising a child is huge and doing it on your own is even harder. Having some financial help would certainly make it easier.

Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)

 

[imalwayshappy]

Thanks Steven!

 

[LDFerguson]

Although not relevant to this query, there would usually be an exclusion for suicide for about 13 months after the start date of the policy, after which it would be covered.