Life Insurance: A Murderous Motive?

Life insurance policies are often a motive for murder, with beneficiaries killing the insured or hiring someone else to do so. This is a common trope in thriller and true-crime stories, but it also happens in real life. In the US, the Slayer Rule or Slayer Statute prevents a beneficiary from receiving insurance money if they are found to have murdered or plotted to murder the policyholder. This rule is in place in almost every state, except New Hampshire, and it applies even if the beneficiary is acquitted of the murder charge.

Murderers can be denied life insurance payouts if they are the beneficiary

Life insurance is often a motive for murder, with beneficiaries, loved ones, or even the insured themselves hatching a scheme to kill the insured to receive the money more quickly. Murder is covered by life insurance, but there are situations in which life insurance does not provide coverage for murder. In most cases, the beneficiary can make a claim and collect the policy benefit as long as they were not complicit in the murder scheme.

The "Slayer Rule" or "Slayer Statute" restricts a life insurance payout to someone who committed the murder of the insured or was closely involved in it. This rule is in place to prevent beneficiaries from benefiting from the death of the policyholder. If the beneficiary is found guilty of murdering the policyholder, they will not receive a payout under the Slayer Rule. This will likely be the case even if the death is ruled manslaughter instead of homicide, or the policyholder died due to the beneficiary's self-defence.

If the beneficiary is under suspicion of killing the insured, the insurance company will hold off on paying the claim until the beneficiary is either charged or exonerated by the authorities. Even if found not guilty, the insurance company may still take the beneficiary to civil court if they believe there is solid evidence linking them to the crime. The standard of proof in civil court is lower than in criminal court, meaning that the beneficiary could still be found guilty and the death benefit revoked.

In the case of Mesac Damas, who was convicted of murdering his wife, a Florida court denied him the insurance proceeds under Florida's Slayer Statute. The Slayer Statute prevents a person from collecting life insurance proceeds as a beneficiary if they were involved in the death of the insured. The proceeds were instead paid to the victim's mother.

In another case, Patrick Cain was found guilty of manslaughter after killing his wife during a domestic dispute. He served two years in prison, and although he claimed he did not intentionally kill his wife, he received only 50% of the life insurance proceeds in a settlement.

Therefore, it is clear that murderers can be denied life insurance payouts if they are the beneficiary. The Slayer Rule or Statute is in place to prevent beneficiaries from profiting from their criminal acts, and insurance companies will often delay or deny payouts until the beneficiary is cleared of any involvement in the policyholder's death.

The Slayer Rule prevents killers from benefiting from their crime

Life insurance is often considered a dull topic, but it becomes a chilling matter when it involves a life insurance murder. Money is a primary motive for murder, and detectives routinely investigate whether there are any life insurance policies on the deceased.

In the United States, the "Slayer Rule" or "Slayer Statute" is a law that prevents killers from benefiting financially from their crimes. This law applies to both real and personal property that would have been acquired by intestacy or by will. In other words, a murderer cannot inherit property from the person they killed, such as a parent or spouse. The rule is based on the principle that a slayer should not profit from their crime and is codified in the form of statutes in 47 states.

The Slayer Rule applies to civil law, which means that a petitioner must prove the murder by a preponderance of the evidence, as in a wrongful death claim. This means that even if a slayer is acquitted of the crime of murder in a criminal court, they can still lose their inheritance in a civil court. The specifics of each state's Slayer Statute can vary significantly. For example, some states allow a civil or probate court to determine that it is more likely than not that the killer would have been convicted of murder, even if no criminal case was brought. Additionally, some states bar the killer's descendants from inheriting certain benefits, while other states specifically allow a killer's descendants to receive the estate's property as if the victim had died naturally.

The Slayer Rule also applies to life insurance policies. If the beneficiary of a life insurance policy is suspected or convicted of murdering the policyholder, the life insurance company will delay or refuse payment. In such cases, the death benefit will typically be paid to the contingent beneficiaries or to the policyholder's estate.

Life insurance companies delay payouts until police investigations are complete

Life insurance companies will delay payouts until police investigations are complete. This is to ensure that the beneficiary of the policy did not have a hand in the policyholder's death. If the beneficiary is found guilty of the murder, they will not receive the payout under the "Slayer Rule". This rule is in place to prevent beneficiaries from profiting from the death of the insured. In some states, insurers can also deny the death benefit if there is a suspicion that the beneficiary financially exploited the policyholder or abused them.

The "Slayer Rule" also applies if the beneficiary hired someone else to commit the murder. If the beneficiary is acquitted of the murder, they may still be barred from receiving the life insurance money. The life insurance company will typically hold the payment until either the charges are dropped or the beneficiary is acquitted of the murder.

Life insurance companies must pay claims within a reasonable time. If the homicide investigation concludes, the life insurance company may owe interest to the beneficiary if they delay the payout further.

Life insurance fraud includes beneficiaries who plot the murder of the policyholder

Life insurance fraud includes beneficiaries plotting the murder of the policyholder, which is a common theme in thrillers, true-crime shows, and even a Taylor Swift song. In real life, however, this is a serious matter.

The "Slayer Rule" or "Slayer Statute" is a law that prevents beneficiaries from receiving death benefits if they are found to have plotted or committed the murder of the policyholder. This law is in place to ensure that beneficiaries do not profit from the death of the policyholder. The rule applies even if the beneficiary is acquitted of the murder charge but is suspected of plotting the murder.

In some states, insurers may deny the death benefit if there is a suspicion that the beneficiary financially exploited or abused the policyholder. The law also applies if the beneficiary hires someone else to commit the murder.

Life insurance companies will delay the death benefit payout until the police investigation is complete and the beneficiary is exonerated. If the beneficiary is found guilty, the death benefit will go to the contingent beneficiaries or the estate of the deceased.

There have been numerous real-life examples of life insurance fraud, including cases where a wife hired an undercover hitman to kill her husband, a pastor hiring a hitman to kill a member of his congregation, and a father murdering his own son for the insurance payout.

Life insurance fraud involving murder is a serious crime, and perpetrators can face severe consequences, including lengthy prison sentences and financial penalties.

Life insurance policies can be taken out on someone else if their death would have negative financial consequences for you

Life insurance policies are often taken out to secure one's family's future. However, it is not imperative that the policy is for oneself; it can also be for a loved one.

Insurable Interest

Insurable interest means the policyholder would suffer a financial loss if the insured family member died. Without insurable interest, the policy could be considered void or even illegal. It is typically not a hard requirement to meet, as most immediate family members naturally have an insurable interest in each other.

Consent of the Insured

The person on whom the life insurance is being taken out should provide consent. This is a legal requirement meant to protect individuals from unwanted policies taken out on them by estranged family members or other entities.

The Financial Assessment

The amount of life insurance needed should reflect the needs of the beneficiary. Assessing these needs is crucial and should be done meticulously to ensure the policy provides the necessary coverage.

Types of Insurance Policies

Term life insurance covers a specific period (or "term")—commonly 10, 20, or 30 years—at a fixed rate. Whole life insurance covers an individual for their entire life as long as the premiums are paid. Universal life insurance offers more flexibility than whole life policies, allowing the policyholder to choose the premium amount and death benefit. Variable life insurance combines a death benefit with a savings component, offering the potential for higher returns but with more risk. Final expense insurance, also known as burial insurance, is typically a smaller policy meant to cover final expenses, such as funeral costs.

Who Can You Take Out a Life Insurance Policy On?

While you can't take out life insurance on just anyone, you can buy a plan for someone else if all the criteria are met. There are a handful of people you may be able to prove you have an insurable interest in more easily:

• Your spouse: It's not uncommon to take out a life insurance policy for a spouse if you and your loved ones rely on them financially.
• Your business partner: If you have built a business with someone else and they were to pass suddenly, taking out a life insurance plan for your business partner may help protect your work.
• Your parents: If you rely on your parents for financial support or may be responsible for their final expenses, it may make sense to help them get a life insurance plan.
• Your child: Instead of insuring someone you rely on financially, the reasons for taking a life insurance policy out on a child are different. In this case, you can help your child get life insurance early in life if they have a known health issue or are at risk of developing one. Health problems can make getting a life insurance plan more difficult, so getting one early can help guarantee your child's insurability.

Frequently asked questions