Bill has a $500,000 life insurance policy naming his minor children as beneficia

Question

Bill has a $500,000 life insurance policy naming his minor children as beneficiaries. Bill is shot and killed while breaking into his neighbor's home. Will Bill's children likely be able to collect the life insurance proceeds?

A. No, all the proceeds will go to a state administrated crime victims' fund.

B. Yes, as it would not be against public policy for beneficiaries to receive insurance proceeds in such a case.

C. No, policies often do not cover the insured when he/she violates the law.

D. Yes, but not entirely. They will be given an allowance for necessaries with the balance going to others.

Explanation / Answer

C. No, policies often do not cover the insured when he/she violates the law.

The insurer may deny the payment of death benefit based on the principle of public policy that one cannot benefit from own crime. So, benefit may not accrue to a criminal or any one claiming through the criminal.

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