If a person buys a life insurance policy and dies one month later, what is the insurer required to do?

When a person purchases a life insurance policy, the insurer is obligated to fulfill the terms of the policy upon the insured's death, provided that the policy was in force at the time of death and that all conditions have been met. In this scenario, since the insured died one month after purchasing the policy, the insurer is required to pay the claim to the beneficiaries stated in the policy, assuming there are no valid reasons for denial, such as misrepresentation or fraud in the application.

This obligation to pay stems from the principle of insurable interest and the contractual nature of insurance policies, which guarantee benefits to the policyholder's designated beneficiaries following the insured's death. The policy remains valid as long as the premiums were paid and the policy was not voided due to specific exclusions or provisions. Therefore, in this instance, the correct course of action for the insurer is to process the death claim and pay the benefits as stipulated in the policy.