Will life insurance cover a suicidal death?

Suicide has risen dramatically in the last 25 years. According to the CDC, deaths from suicide have increased by 35% during that time. The most-affected groups and demographics included women aged 45-64 and men 75 and older. Men were also more likely to commit suicide than women. 

Is suicide covered by life insurance? Yes, life insurance will pay for suicidal death as long as the terms of the policy’s suicide clause are met. 

However, these statistics and a history of depression can impact your life insurance rates. Here’s what you need to know about life insurance and suicide.

Does life insurance cover suicidal death?

According to the CDC, deaths from suicide have increased within certain age groups and demographics, primarily women aged 45-64 and men who are 75 or older. Because most types of life insurance cover a policyholder in the event of death, including natural and unforeseen circumstances, willful suicide or self-termination may not automatically result in a denial of benefits. 

Two separate clauses represent a grace period of two years, which generally must be met before any qualified claim will pay out life insurance for suicide.

Contestability Clause in Life Insurance

In many cases, life insurance will cover suicide if a period of two or more years has elapsed since their policy start date. 

Many other scenarios, however, will also fall under the contestability clause, which can result in denial of coverage, like accidental death due to personal negligence or risky or illegal behavior. It’s most important that individual and group life insurance policyholders read their contracts down to the fine print, so they understand what scenarios are covered.  (For more information, read our “Life Insurance vs. Accidental Death & Dismemberment (AD&D) Insurance: Which Is Better for You“).

Suicide Clause in Life Insurance

Life insurance policies taken out via a person’s employer may automatically cover suicide. However, there could still be a waiting period before beneficiaries qualify to protect the insurer. 

In any life insurance policy, whether individual or employer-provided life insurance, this is known as a suicide clause. The suicide clause is more specific than the contestability clause, which also covers other situations that would nullify your life insurance policy.

Contestability and Suicide Clauses When Updating or Switching Life Insurance Policies

Your contestability period and suicide clause revert to their original state if you switch life insurance policies, even if they are with the same insurer. As a result, there would be another waiting period during which your life insurance would no longer be valid if you committed suicide. 

This is typically not the case if you merely convert your life insurance policy. For example, you wouldn’t start a new contestability period if you changed your term life insurance policy to a whole life insurance policy with the same death benefit. 

However, the suicide clause and contestability clause would reappear if you had two term life insurance policies and chose to consolidate them into one with a higher face value.

Your beneficiaries won’t get the policy’s death benefit if you pass away during the contestability period and it’s determined that it was a suicide. Still, they might get the whole amount of premiums paid instead. For a cash-value life insurance policy, the amount of your policy loan would be subtracted from the payout your family would get and had borrowed money from it.

Your life insurance quotes are always free.

 Secured with SHA-256 Encryption

Questionable Life Insurance Situations

Because suicide rates often vary by age, gender, ethnicity, and other individual risk factors, life insurance rates and policies may vary, especially if a person has a history of self-harm or alcohol or drug abuse and has demonstrated intent in the past.

Full transparency is recommended anytime you open an insurance policy to avoid the possibility that insurance adjusters perform an investigation under suspicion of wrongdoing or unjust enrichment.

Does life insurance cover drug overdose or alcohol?

A life insurance policy will cover accidental drug overdose. The primary denial of life insurance benefits occurs when you don’t tell them everything ahead of time. To avoid having a claim denied due to policy exceptions, ensure that you tell them about the following before opening the policy:

• Any history of drug or alcohol abuse, treatment, or rehabilitation
• All medications you have taken in the past or are currently taking
• Mental illnesses such as depression or anxiety
• Risky behaviors such as wing-suit gliding, base jumping, or skydiving

You can get life insurance for alcoholics as long as you are honest about it. Just remember that group life insurance may provide fewer benefits than individual life insurance policies by default.

Read more:

• How To Get Life Insurance With Depression
• How Perscription Drugs Impact Life Insurance Rates

Is medical assistance in dying, death with dignity, or euthanasia covered by your life insurance policy?

That depends on your coverage. While medically assisted dying, or death with dignity, is allowed in over 20% of the U.S., it is not without its legal guidelines and requirements. If a person has been given a terminal medical diagnosis in a state where it is allowed, doctor-assisted suicide may be allowed within six months.

Some policies offer special benefits for terminal illnesses, while others can limit when and if you receive coverage before you meet the policy’s grace period. Because no two life insurance policies are the same, it’s up to you to know what’s in yours. 

Does life insurance cover the military for suicide?

VGLI or SGLI typically covers members of the U.S. armed forces in the event of suicide since those who serve in the military are carefully screened during the enlistment or commissioning process anyway. 

Any tendencies toward suicide not previously discovered are considered to be the responsibility of the U.S. government.

What is a claim denial of life insurance for suicide?

If an insurance company decides to investigate a life insurance suicidal death claim, suspecting foul play or a violation of the policy, they may seek out the following:

• The death certificate or autopsy report
• Eye-witness testimony from family, neighbors, co-workers, and friends
• Weapons purchase history
• Medical and hospital records
• Evidence of criminal, illegal, or dangerous behavior
• Anything that closely resembles a suicide note

While most life insurance claims often cover suicide, it’s also important to remember that companies may deny your claim or attempt to limit the payout to maintain or expand their profit margins and executive bonuses.

How to Contest a Denial of Life Insurance Benefits Due to Suicide

Suppose you disagree with the actions of the insurance company. In that case, legal counsel can often help you overcome any failure on their behalf to pay the full, legitimate, and lawful amount, as well as cover all legal fees. In many cases, it can even be settled out of court.

This is why it’s equally important to know your state’s laws regarding the contestability and suicide clause since they may vary slightly.

State Laws for Suicide and Life Insurance

Different states have safeguards on suicide for life insurance, so you may wish to check your state’s legislation if you disagree with an insurer’s choice to reject a claim because of suicide. 

For instance, in Texas, the contestability period of a policy can only be prolonged for a maximum of two years, and insurers are not permitted to add additional suicide clauses to converted contracts. 

You normally have two to four years in California to file a lawsuit to oppose a contract. The contestability period for a life insurance policy is also limited to two years in Texas.

State Laws for Physician-Assisted Suicide and Life Insurance

Ten states and Washington D.C. have some form of legal physician-assisted suicide:

• California
• Colorado
• Washington D.C.
• Hawaii
• Maine
• New Jersey
• New Mexico
• Oregon
• Vermont
• Washington

Read more: Maine Life Insurance 

Montana has court-ordered assisted death in specific situations.

In the other 40 states, medically-assisted death is prohibited and can result in serious legal charges ranging from misdemeanor to felony, including murder charges. 

However, Nevada, North Carolina, Utah, West Virginia, and Wyoming do not have specific statutes expressly prohibiting physician-assisted death, as it may not be covered under common law, or the state may not recognize common law itself.

Read more:

• Utah Life Insurance
• Nevada Life Insurance
• Oregon Life Insurance
• Vermont Life Insurance

Euthanasia, or choosing to end one’s life without medical diagnosis or evaluation, is prohibited in all U.S. states and Washington, D.C.

Your life insurance quotes are always free.

 Secured with SHA-256 Encryption

Case Studies: Life Insurance and Suicidal Death

Case Study 1: The Contestability Clause

Sarah, a 35-year-old woman, purchased a term life insurance policy three years ago. Unfortunately, she struggled with depression, and her mental health took a severe toll. Tragically, Sarah took her own life. Her family filed a claim with the insurance company, but they were informed that the contestability clause was applicable.

The contestability clause stated that if the insured dies within the first two years of the policy, the insurer has the right to investigate the circumstances surrounding the death. After a thorough investigation, including medical records and interviews with family and friends, the insurance company determined that Sarah’s death was indeed a suicide.

As a result, the claim was denied, and Sarah’s family did not receive the death benefit from the policy.

Case Study 2: The Suicide Clause

Mark, a 55-year-old man, had a whole life insurance policy provided by his employer. He had been struggling with depression for several years but managed to maintain his employment. Sadly, Mark decided to take his own life.

Since Mark’s policy included a suicide clause, which had a waiting period of two years, his beneficiaries were eligible to receive the death benefit. The insurance company conducted an investigation to confirm that the suicide occurred after the waiting period had passed.

After verifying the timeline and fulfilling all necessary requirements, the insurance company approved the claim, and Mark’s beneficiaries received the full death benefit.

Case Study 3: Switching Policies and the Suicide Clause

Jennifer, a 40-year-old woman, had two term life insurance policies with different insurers. She decided to consolidate her policies into a single policy with a higher face value. During this process, she was informed that the suicide clause and contestability period would reset.

Unfortunately, Jennifer passed away by suicide six months after consolidating her policies. Her family filed a claim with the insurance company, but it was denied due to the suicide occurring within the new waiting period.

As a result of switching policies, Jennifer’s beneficiaries did not receive the death benefit, and the premiums paid were not refunded.

Understanding Life Insurance and Suicide Coverage

When it comes to life insurance that covers suicide, policyholders and their beneficiaries need to understand the specifics outlined in their agreements. Typically, life insurance policies that cover suicide include a suicide clause, which is a period during which the insurer will not pay out if the insured commits suicide. However, after this period, usually two years, life insurance will pay for suicidal death. It’s crucial to review your life insurance policy that covers suicide carefully to know the exact terms. For instance, New York life insurance suicide clause is well-known for its standard two-year exclusion period. In contrast, some insurers offer life insurance without suicide clause, meaning there is no exclusion period, and the life insurance pay out for suicide is guaranteed from day one.

For those looking for policies that provide broader coverage, some companies, like Colonial Penn, have specific requirements and documentation. If a policyholder from Colonial Penn life insurance company passes away, their beneficiaries will need to fill out Colonial Penn life insurance company death claim forms to process the claim. In some unfortunate instances, there may be a Colonial Penn life insurance lawsuit if there are disputes over the payout. Choosing a life insurance policy without suicide clause or a life insurance with no suicide clause can offer peace of mind, especially in states where death with dignity life insurance provisions are relevant. Understanding death with dignity statistics can also provide insight into how these policies interact with end-of-life choices and making a life insurance claims for committing a suicide. It’s essential to choose a policy that aligns with your needs and provides the necessary life insurance suicide coverage for your peace of mind and your family’s financial security.

Life Insurance Policy Checklist for Suicidal Death

According to the American Society for Suicide Prevention, suicide is the 12th leading cause of death in the United States. Because suicide is so prevalent, insurance companies issue life insurance policies to holders that protect their business interests against the willful, express intent to derive a benefit directly from suicidal death. 

Life insurance covers suicide if you don’t violate your policy’s exceptions. As long as you’ve paid your bills on time, been transparent throughout the underwriting process, and the period for contestability and suicide clauses has expired, less than 1% of life insurance claims are ever denied.

Follow this life insurance checklist to ensure your policy will cover suicidal death:

• Check if your policy is for term life insurance or permanent life insurance. The former is for a fixed period, and the latter is automatically withdrawn and paid by the insured for the remainder of the policyholder’s life.
• Research your group life insurance benefits if you have them. They can offer limited coverage due to their wholesale discount through an employer. Typically, group life insurance benefits do offer coverage for suicide after the initial 2-year period.
• Accidental death life insurance will not cover suicide. It is typically less expensive and more specialized, offering limited coverage. Other life insurance policies are all-encompassing and will cover suicide after the suicide and contestability requirements have been met. 
• Accidental death due to risky behavior or illegal drug overdose may also result in denial of a claim, depending on what is explicitly stated in your policy. Often, accidental overdose of prescribed medication and resulting death will not automatically incur a penalty, pending an investigation.

Life insurance companies will often still pay benefits after suicide, so long as no fraud is suspected, such as a failure to report a history of mental illness or depression, and an initial two-year period has passed.

Your life insurance quotes are always free.

 Secured with SHA-256 Encryption