Does Life Insurance Cover Suicide

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

The insurance company will request a death certificate when the beneficiaries of a deceased policyholder submit a claim, Self-inflicted death would be noted on the death certificate alongside the cause of the individual's passing.

Suppose the death certificate is unclear or includes a suspicious cause. In that case, the insurance company may require additional proof, such as an autopsy report, a medical examiner's report, an emergency medical services (EMS) report, or the individual's medical records.

Since suicides can take longer to investigate, the beneficiaries of a life insurance policy may experience a delay in receiving the benefit.

Life Insurance Death Benefits After Suicide

If the death occurred within two years after the policy purchase, the beneficiaries may not be eligible for the death benefits. However, if the death happens outside the contestability period, they are eligible for death benefits.

If suicide occurs within the first two years of the policy, beneficiaries may be eligible for a return of the premiums. States like California, Colorado, Oregon, Washington, and Vermont allow doctor-assisted suicide. However, in the case of doctor-assisted suicide, the beneficiaries will receive the death benefits, provided the required documents are submitted.

Life Insurance Suicide Clause

Most life insurance policies have a suicide clause lasting two or three years after the coverage starts. During this time, the standard investigates the policyholder's death.

Insurers can reject a beneficiary's claim to the life insurance death benefit if they can prove that the policyholder committed suicide during this time or if law enforcement or a medical examiner says the policyholder's death was a suicide.

Life Insurance Suicide Incontestability Clause

A contestability period is another condition commonly included in life insurance contracts. This clause allows the insurer to refuse or lower the death benefit paid out to the beneficiaries of the policy. The contestability period typically lasts for your policy's first one to two years. It gives the insurance provider the right to investigate any fatalities during that time for signs of possible insurance fraud.

If it is discovered that you misrepresented your insurance policy application, the firm has the right to either decline to pay a claim or pay out a lesser sum.

If you own a term policy

Your term life insurance policy has a suicide clause for the first two years. If you commit suicide in the initial two years, your beneficiary will receive a refund of all premiums instead of the death benefit.

If you own whole life insurance

Like term life, whole life insurance deals with suicide similarly. There will be a suicide clause to protect the insurance company in the first two years. The difference with whole life insurance is that in addition to getting your premiums back, your beneficiary will also get any cash value built up in the policy.

If you own a group insurance

Since employer-sponsored group life insurance policies are generally renewed annually during open enrollment, suicide clauses are rarely included. This means that your group life insurance policy will likely pay benefits for any cause of mortality.

If you are on active military insurance

Active military members and veterans are eligible for life insurance through Veterans Affairs, and there is no exclusion for suicide in this policy. No restrictions prevent your beneficiary from claiming the full death benefit if you commit suicide.