If a policyholder is accidentally killed within two years of buying a life insurance policy, what will the insurance company do?

When a policyholder is accidentally killed within the first two years of purchasing a life insurance policy, the typical course of action for the insurance company is to pay the face amount of the policy. This payment is made because accidental death generally falls under the standard coverage provisions of life insurance policies.

Insurance companies usually include a two-year contestability period, which allows them to investigate claims thoroughly to ensure that there is no fraud or misrepresentation in the application process. However, if the death is accidental and not the result of suicide or other exclusions specified in the policy, the insurer is obligated to fulfill its promise and pay out the death benefit to the beneficiaries, which is the face amount stated in the policy.

In this context, other options like refunding the premium, paying double the face amount, or paying nothing do not align with the standard practices followed by insurers regarding accidental deaths during the contestability period.