Can a life insurance company drop you if you get sick and think you are going to die?
No, that is not how it works, Daniel. In individual health insurance we find that kind of thing happening, especially in the non-guarantee issue days preceding ACA; the name for that was "post claim underwriting" where a claim was the trigger that caused the carrier to drop the member. It was unfair, but it was done. In life insurance, the contract date is the point from which you are covered and all underwriting is done at that point.
Keep in mind that your life insurance policy has a clause that says that the carrier can contest the claim if you pass away within the first two years. Example: on your application you said that you did not have a terminal illness and it was not discovered when you applied, but you passed away within the two years from that same illness - and there are records to support the fact that the illness predated the application, there could be a problem. A carrier investigating your death could find those records. That would be called an issue of contestability; they would contest the obligation to pay the death benefit..
Notice that, barring contestability issues, you can get terminally ill, start smoking, get a private pilot's license, or start climbing on rocks, and anything else that could increase your risk of dying after your policy is in force, and none of it will cause you to be dropped.
| 12.16.15 @ 18:23