The short answer here is yes, but it needs an explanation. Life Insurance and wrongful death can, indeed, both pay the beneficiaries of a person who has died based on certain circumstances. This post will provide explanations of both and help explain how they can be beneficial together.
It is important to remember that life insurance policies are contracts which come with conditions. If a person pays their premiums each month as agreed, the life insurance company pays the family, or others designated, in case of the policy holder’s death. However, part of the contract allows the insurance company to set limits, or exclusions, on the policy around certain types of death. For example, high-risk behaviors like skydiving or car racing, if they result in death, can be, and routinely are, excluded from many life insurance policy coverages. The policyholder can still go skydiving, but they agree that if they die while skydiving, then the insurance policy will not be paid out. However, if the death of a policyholder is determined to be within the limits of the policy, at least being financially secure offers peace of mind, and when the worst occurs, family members of the deceased have the fiscal safety net of a life insurance policy to help them continue their lifestyle unimpeded by crushing debt.
Source: Murfreesboro Insurance
Wrongful Death Suit
Wrongful death refers to a type of lawsuit filed against a person or company that the survivors of the deceased bring if they believe the company or person is responsible, or liable, in some way that could have been prevented. For example, if a policyholder goes skydiving and dies because the parachute did not open, the beneficiary could still bring suit to determine if the parachute manufacturer made a defective product that caused the death. While the life insurance policy may not have paid out in the case of the skydiver, the lawsuit might award damages to the beneficiary if the parachute company is found responsible.
Source: Expert Law
How They Can Work Together
A common misconception around life insurance and wrongful death lawsuits is that they cancel each other out. This is not the case. They are, generally, independent of one another. If a life insurance policy pays out on a death benefit, for example, a car accident while on a trip, and the policyholder was not at fault, a wrongful death suit can also be brought. This is quite common in accidents involving semi-trucks where a driver might have fallen asleep or the truck company did not do proper maintenance. Life insurance beneficiaries in such cases are not prevented from bringing wrongful death lawsuits and being awarded damages.
Source: GTG Technology Group
In conclusion, life insurance can bring security to those left behind when unforeseen circumstances arise. Wrongful death lawsuits can serve to provide a sense of justice when a death at the hand of another could have been prevented. Attorneys who practice wrongful death and personal injury law can assist grieving loved ones in finding the financial assurance that life can continue as planned.