Life Insurance

Life insurance, generally, isn't a contract of indemnity; it's more of an investment. The amount to be paid has already been predetermined, not like property insurance where the amount payable is contingent to the extent of the loss. Also, there is no limit as to the amount that may be taken on one's life; it all depends on the insured's capacity and willingness to pay the premiums.

Health, disability and accident insurance, on the other hand, is considered a contract of indemnity insofar as hospital and medical expenses are concerned. A health insurance can also be viewed as a casualty insurance, which is why it can be issued by both life and non-life insurance companies.

A life or health insurance policy may be assigned by succession or will to a person without insurable interest and he can recover whatever the insured might have recovered. The transfer doesn't require a notice to the insurer unless the policy expressly requires -but even if the notice isn't made, the assignee is still entitled to receive the proceeds. Once the beneficiary is paid, the insurer is relieved of his obligation.

Suicide

Suicide will not make the insurer liable except in the following instances:

1.) It is committed after the 2-year incontestable period from date of issue or last reinstatement of the policy (the period may be shortened by stipulation but not extended)

2.) It is committed in a state of insanity (time doesn't matter) and it isn't an excepted risk