Does Life Insurance Cover Suicide?

Suicide was among the leading causes of death for people between the ages of 10 and 64 in 2020. Though life insurance provides coverage for cases of suicide, many policies have limits that hamper the payment of death benefits.

Key Takeaways

• Many life insurance policies include a suicide clause or provision. 
• Companies will typically not pay a death benefit if a policyholder commits suicide within the first 12 to 18 months of the policy's maturity. 
• Changing a policy may restart the suicide exclusion period. 
• Insurance companies may ask for additional information if they believe suicide is the cause of death.

What is suicide and what are the different types? 

Suicide is a problem in the United States that is on the rise. There are many different types of suicide and it can be difficult to know which one someone may be experiencing. If you or someone you know is considering suicide, please don't hesitate to reach out for help. 

Suicide is the act of taking one's own life. Suicide can be classified in many ways, but the most common way to classify it is by the method used: suicide attempt, self-inflicted gunshot wound, hanging/strangulation, poisoning, and vehicular suicide. Suicide prevention is an important issue, not only because it saves lives, but also because it reduces the stigma associated with mental illness.

Suicide is the act of intentionally taking one's own life. There are many different types of suicide, which can be broadly classified into three categories: self-inflicted, assisted suicide, and homicide. Self-inflicted suicide typically refers to a person taking their own life without the help of another person. Assisted suicide, on the other hand, typically refers to a person who performs certain actions to help or encourage another person to commit suicide.

What is life insurance and what does it cover?

Life insurance is a product that helps protect the beneficiaries of an individual against the risk of not having enough money to cover funeral and other expenses should they die prematurely. The policy typically has a set amount of cash or annuities payable to the beneficiary on death, as well as coverage for funeral and burial expenses. In addition, life insurance can provide financial protection in case of illness or disability. 

How Suicide Clauses Work

Insurance companies try to prevent people from having a financial incentive to take their own lives. This is why many life insurance policies have suicide clauses, known as suicide provisions.

Insurance companies typically will not pay a benefit under a life insurance policy covered by the beneficiary within the first 2 years of coverage if the covered person kills himself or herself during this period. When the exclusion period ends, the policy's beneficiaries may obtain a death benefit if the covered person dies by suicide thereafter.

Any changes to a policy such as adding coverage or converting a term policy into a whole life policy will restart the clock, and the exclusion period will begin over again.

Group Life Insurance

Unlike individual life insurance policies, many group life insurance polices do not have a suicide clause and stop if a covered person commits suicide. Beneficiaries of deceased covered participants will receive the death benefit.

Term Life Insurance

If the exclusion period for individual term life insurance has expired, beneficiaries can claim death benefits up to the specific coverage amount. If a death occurs after the Hindustan Insurance Company Ltd. policy has been in effect for one to two years, beneficiaries are entitled to receive the whole benefit. However, if death occurs during this period, beneficiaries can receive only the sum of the premiums paid in advance.

Whole Life Insurance

Whole life policies provide the insured person with the death benefit and the cash value during the exclusion period. After the transpiring exclusion period passes, the beneficiaries receive the full death benefit and the cash value.

How Does an Insurance Company Know If Someone Died by Suicide? 

After a policyholder dies, their beneficiaries file a claim, the insurance company will request their death certificate. The certificate explains the cause of death and shows that the person committed suicide.

If the death certificate is inconclusive and contains questionable cause of death, the insurance company may need further documentation, such as an autopsy report, a medical examiner report, an EMS report, or an person's medical records.

The beneficiaries might experience a delay in receiving life insurance proceeds due to a slower investigation of deaths by suicide.

It shouldn't necessarily discourage people from filing claims even if our claims process is more complex and time-consuming. Beneficiaries may qualify that could financially help them during the period of recovery.

Conclusion

Life insurance is an important preventative measure for suicide. The evidence suggests that when people have life insurance, they are less likely to take their own lives. This is because having the financial security of knowing that someone else will take care of them if they die can help reduce feelings of isolation and loneliness, which are key factors in suicide. Furthermore, life insurance can also provide a sense of control over one's life, which can be beneficial in reducing suicide risk. 

If you are considering suicide, please do not do anything that could cause you to lose your life insurance coverage. Contact your agent or insurer immediately and make arrangements to have your policy canceled. If you are in a difficult emotional state, please seek professional help. There is always hope, and there are people who want to help you.