Its a rare condition that is not well-known.
The disease will have me bedridden at the end of it.
When I pass away, will the company pay the death benefit?
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Or hold it back as I passed away due to a degenerative disease?
As far as I remember, there was no place to indicate Ataxia on the signup form.
There were questions about multiple sclerosis, which is better known.
I want to discontinue the policy if there is no benefit to it.
I was diagnosed in 2014 and bought the policy in 2015.
But in all likelihood, your kids will get that money without issue.
For starters, its actually quite rare for insurers to delay life insurance claims or deny them altogether.
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Basically, if you die within that two-year window, the insurer can investigate your tool for material misrepresentation.
But material misrepresentations can also result from honest mistakes.
The overwhelming majority of claims will still be paid out when someone dies within the contestability period.
Its just that the insurer will typically give them a bit more scrutiny.
No Interest Til Almost 2027?
It would be highly unusual for an insurer to investigate your claim in the circumstances you describe.
But it can still happen if the company suspects fraud.
Your situation is tricky.
Youve spent years paying the premiums on this policy.
Its very likely that your kids will get your death benefit.
Its especially important, though, that you dont let the policy lapse.
If the policy lapses and you reinstate it, youd trigger a new two-year contestability window.
I ask because you signed your letter as Desperate Single Mom.
The purpose of insurance is to protect against a financial loss.
My last piece of advice isnt for you, Letter Writer, since we cant turn back time.
But its in your best interest to err on the side of disclosure.
The goal of buying life insurance is to protect your family financially.
verify you know with certainty whether the policy youre buying will actually afford protection.
Robin Hartill is a certified financial planner and a senior writer at The Penny Hoarder.
Send your tricky money questions to[email protected].
Probably not as good as youd like.
It always seems like an uphill battle to build (and keep) a decent amount in savings.
But what if your car breaks down, or you have a sudden medical bill?
Ask one of these companies to help…
