Steve who lives in Rapid City, South Dakota is one of my readers and his question was” What happens if you die within twelve months of buying a life insurance policy?”

Rapid City, is in the western part of the state of South Dakota. Rapid City has a large amount of public sculpture on display in many parts of the city.. The most visible of this art is the “parade of Presidents

Answer to Readers Question:Steve, if you die within twelve months of buying your life insurance policy, one of several things may happen:

1. The insurance company may pay your life insurance proceeds to your beneficiary. The payment is usually free of any federal income tax.
2. The insurance company may review the claim and if determined it was death by suicide, the claim would most likely be denied, as there is a common Suicide Exclusion in most life insurance policies excluding suicide within one or two years of buying the policy.
3. If the insurance company determined there was misrepresentation on the application whereby the answering of questions on your application was untruthfully – the policy may be voided. This is called the Incontestable Clause, it lasts for up to 2 years after you buy the policy.