Does life insurance cover suicide? Life insurance policies are designed to provide financial protection to beneficiaries, but they come with specific terms and conditions.
One critical question often raised is whether life insurance covers suicide. The answer depends on various factors, including the type of policy and its provisions.
However, most life insurance policies include a suicide clause, which outlines how claims related to suicide are handled.
Usually, this clause specifies a waiting period, often two years, during which the policy will not pay out if the insured dies by suicide.
After this period, beneficiaries may be eligible to receive the full death benefit, provided the premiums were consistently paid.
So, understanding the terms of your policy is essential, as different insurers may have varying rules regarding suicide coverage.
What Is A Life Insurance Suicide Clause?
A life insurance suicide clause is a specific condition in most policies that applies during the first two to three years after the policy becomes active.
During this period, the insurer can investigate the circumstances surrounding the policyholder’s death.
If the investigation confirms that the death was due to suicide within this time frame, the insurer has the right to deny the claim and withhold the death benefit from the beneficiaries.
How Does a Suicide Clause Work?
Insurance companies include a suicide clause, also called a suicide provision, to discourage individuals from taking out life insurance with the intent of benefiting their loved ones through suicide.
If the policyholder dies by suicide during the exclusion period, typically the first two years of coverage, the insurer will not pay the death benefit.
After the exclusion period ends, the policy will generally cover suicide, and beneficiaries can receive the death benefit.
However, making significant changes to a policy, such as increasing coverage or converting a term policy into a whole life policy, may restart the exclusion period.
When Does Life Insurance Cover Suicide?
Contrary to popular belief, life insurance may cover death by suicide once the exclusion period has passed.
However, this coverage is subject to the policy terms and conditions. It’s essential to review the policy details carefully to understand the specific requirements.
Special Considerations For Military Life Insurance
Some military life insurance policies, like Servicemembers’ Group Life Insurance (SGLI) and Veterans’ Group Life Insurance (VGLI), stand out because they provide death benefits regardless of the cause of death.
This includes deaths caused by suicide or acts of war, offering additional financial security for military personnel and their families.
Does Life Insurance Cover Death By Drug Overdose?
Whether life insurance covers a drug overdose depends on the circumstances and what the insured disclosed when applying for the policy.
For example, if the overdose involved prescribed medication and was reported during the application process, the beneficiaries may still receive the death benefit.
On the other hand, deaths caused by illegal drug overdoses are usually not covered.
Life Insurance After A Suicide Attempt
Applying for life insurance after a previous suicide attempt can be challenging but not impossible. Insurers may require a detailed evaluation during the underwriting process.
They might ask for information about the attempt, such as when it occurred. Whether it was an isolated incident, and if the applicant has received treatment.
This evaluation helps insurers assess the applicant’s risk level and determine the premium rates. Applicants who show evidence of ongoing treatment and stability may qualify for lower rates.
How Insurers Investigate Suicide Claims
If a policyholder dies and the cause of death is suspected to be suicide. The insurer will request a death certificate, which includes the official cause of death.
If the cause is unclear or raises questions, additional documentation may be required. This might include autopsy reports, medical examiner findings, emergency medical services (EMS) records, or the deceased person’s medical history.
Since investigating suicide claims can take time, beneficiaries may face delays in receiving the death benefit. However, these investigations are standard procedure to ensure compliance with the policy terms.
Final Thoughts
The suicide clause is a critical component of life insurance policies. While it limits coverage during the early years of a policy, it ensures that beneficiaries receive protection once this period ends. .