What happens to burial insurance if the policyholder dies of natural causes within two years?

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This depends on the type of policy. Fully underwritten and many simplified issue policies have a full death benefit from the start. During the contestability period (commonly the first two years), the insurer can review the application and may deny a claim for material misrepresentation, and policies may also have a suicide exclusion in the early years. Guaranteed issue policies are different — they commonly include a graded death benefit for the first two to three years, meaning a death from natural causes during that window pays back premiums paid plus interest rather than the full face amount. Accidental death is usually paid in full immediately. It's important to clarify which type of policy you're getting before purchasing, since this distinction significantly affects what your family would actually receive.

What happens to burial insurance if the policyholder dies of natural causes within two years?

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