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One issue I see is fraud. How would one deal with life insurance? Still cancel it out? Is that fair if someone paid for a period of years in good faith and circumstances changed? Is it fair to have a payout if someone pulls a policy then offs themselves?

Civil stuff, but still issues.

Generally, life insurance is going to pay off in the case of suicide anyway, if you've had the policy long enough (which is usually two years, but read the fine print),after which the policy is "inconstestable". After that, suicide is just part of the statistics, and is built into the mortality tables. The period may be determined by state law, or just be up to the insurance company. I had one group policy through work, where the period was one year - long since passed.

The theory is that nobody who's thinking about suicide is going to take out additional life insurance and then wait around for two years.

And in the case of a terminally ill person, the insurance company would have had to pay off soon, anyway.

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