SABC Livhu’s wife Life cover case study
Warning: This is an opinion piece and not in any way or form trying to imply that the SABC Livhu’s case was motivated by life cover benefits.
If, for example, SABC Livhu is a beneficiary of any life insurance policy the couple have, in a situation where a policy holder dies mysteriously, will the suspect receive the payouts?
Answer: It is not appropriate to profit from the death of a loved one, and many life insurance policies have provisions in place to prevent this. In the case where a husband kills a wife, and the husband is a beneficiary on the wife’s life insurance policy, it is likely that the life insurance company will not pay out the death benefit to the husband.
There are several reasons for this. Firstly, most life insurance policies have a provision known as the “incontestability clause”, which states that the insurance company cannot contest the policy after a certain period of time (usually two years) unless there is evidence of fraud. However, if a policyholder is murdered by a beneficiary, this would likely be considered fraud, and the insurance company would not be obligated to pay out the death benefit.
Secondly, many countries have laws in place that prohibit a person from profiting from a crime they have committed. For example, if a person is convicted of murder, they are not entitled to inherit from the victim’s estate. This would also apply to any life insurance benefits that the victim had named the convicted murderer as a beneficiary on.
Lastly, in many cases the company will not pay the benefit until the criminal proceedings are over and the person is officially found guilty.
In conclusion, it is unlikely that a husband who kills a wife will be able to collect the death benefit from her life insurance policy. The incontestability clause, state laws prohibiting profit from crime, and the need to wait for the criminal proceedings to conclude will all likely prevent the husband from collecting the death benefit. It is important to remember that life insurance is meant to provide financial protection for loved ones in the event of a tragic loss, and should not be used as a way to profit from a crime.
