Does life insurance pay if the death was from an illness or old age?

Ordinary life insurance is not accident insurance. It pays your beneficiary when you die. Once the policy has been in effect for more than two years, the company must pay the death benefit regardless of the cause of death [1]. State law says the same from the other side: a policy in force for two years from its date of issue is incontestable, except for nonpayment of premiums [3]. So illness or old age is not by itself a reason to refuse.

The first two years are the part to understand. The state guide says life insurance policies have a two-year contestable period. Die inside it and the company may review what you put on your application. If it finds wrong information, or something you did not disclose, it can deny payment — even if that information had nothing to do with the cause of death [1]. If it denies payment that way, it must return the premiums to your beneficiary [1]. One warning: if the policy lapses and you reinstate it later, a new contestable period starts [1].

Suicide sits in its own line. During the first two years, companies usually will not pay the death benefit if the cause of death is suicide, and the premiums go back to the beneficiary instead [1]. State law backs that up. A life policy may provide for a settlement less than the face amount if the death is by the insured own hand, whether the insured was sane or insane [2].

An accidental death rider is a separate thing. It adds a payment if you die because of an accident, on top of the death benefit, and it has its own restrictions [4]. So a death from illness pays the base benefit, not that extra.

Open your policy and look for two things. The suicide clause. And the part on when the company can contest the policy. Then check the issue date, and whether the policy ever lapsed and was put back [1].