Do You Get Life Insurance If You Kill Yourself?

When considering life insurance, many individuals aim to provide financial security for their loved ones. A difficult aspect of this planning involves understanding how policies address death by suicide. Life insurance policies contain specific provisions for death by suicide, with details depending on policy terms and timing. This article clarifies the general approach life insurance takes when suicide is involved.

Understanding the Suicide Clause

Most life insurance policies include a “suicide clause,” a standard provision preventing individuals from buying a policy with the intent of self-harm for a payout. This clause specifies a period, usually two years from the policy’s issue date, during which if the insured dies by suicide, the insurer is not obligated to pay the full death benefit.

If a policyholder dies by suicide within this initial period, the death benefit is usually not disbursed. Instead, some policies return the premiums paid up to the point of death to the beneficiaries, depending on policy terms and state regulations. This return of premiums offers some financial relief, but it does not equate to the intended death benefit.

The suicide clause serves as a specific exception to the incontestability clause, which prevents insurers from denying claims based on misrepresentations after a certain period, usually two years. The incontestability clause ensures that after its effective period, the policy cannot be contested for reasons like misstated health conditions. However, the suicide clause allows the insurer to deny a claim based on suicide even if other potential misrepresentations would have become protected. This distinction highlights its unique nature, designed to protect the insurer from significant financial risk and moral hazard.

Coverage After the Clause Period

Once the suicide clause period, two years, has elapsed, a death by suicide is treated like any other covered cause of death under the life insurance policy. If the policyholder dies by suicide after this exclusionary period, the full death benefit is paid out to the designated beneficiaries. This assumes that all other policy conditions were met, such as premiums being current and no other policy violations.

It deters fraud at policy inception. It does not permanently exclude suicide as a cause of death for the entire duration of the policy. After this waiting period, the policy provides coverage for suicide like natural causes or accidents, providing beneficiaries the intended financial protection.

If a policy is switched or replaced, the suicide clause, along with the contestability period, restarts from the effective date of the new policy. This means that beneficiaries would again face a waiting period during which a suicide claim might be denied. Maintaining continuous coverage without lapsing or significant changes can affect how these clauses apply over time.

Distinguishing Suicide from Accidental Death

When the cause of death is not immediately clear or there is suspicion of suicide, particularly within the suicide clause period, life insurance companies investigate. These investigations aim to determine the cause of death to determine coverage. Insurers may review various forms of evidence to make this determination.

Common documents requested include official reports such as police reports, medical examiner or coroner findings, and toxicology reports. Medical records of the deceased are also examined, especially if there were any undisclosed health conditions or mental health issues. Investigations are more thorough when distinguishing between accidental death, such as an overdose or a single-car accident, and intentional self-harm.

The burden of proof rests on the insurer to establish that the death was suicide if they intend to deny a claim based on the suicide clause. This means the insurance company must present sufficient evidence to demonstrate that it is more likely than not that the death was self-inflicted. If the evidence is inconclusive or points to an accidental cause, the insurer may find it challenging to deny the claim.

What Beneficiaries Need to Know

Upon the death of a policyholder, beneficiaries should initiate a claim by contacting the life insurance company directly. This process involves submitting a certified copy of the death certificate and completing the insurer’s claim forms. Providing the policy number and the deceased’s information helps expedite the process.

If the death is by suicide and occurs within the policy’s suicide clause period, beneficiaries should expect a more detailed investigation by the insurer. This investigation may lead to requests for additional documentation, such as police reports, medical records, or coroner findings. Cooperation with reasonable requests for information is advised, but beneficiaries also have rights regarding the scope of the investigation.

Claims involving a death by suicide within the exclusionary period may take longer to process due to the investigation to determine the cause of death and the policy’s applicability. Even if the death benefit is not paid out due to the suicide clause, beneficiaries should inquire about receiving a refund of the premiums paid by the policyholder. This return of premiums can provide some financial assistance during a difficult time.