Will Life Insurance Pay If The Insured Commited Suicide?

Life insurance policies are extremely efficient in providing financial protection against the death of the policyholder. They cover both accidental and natural death, due to diseases or old age. But normally life insurance policies do not offer death benefits in case of suicide. There certain clauses stated in the contracts that make reference to that and life insurance will not pay off if the insured committed suicide.  This is available for all life insurance over 50 policies.

post3So, by committing suicide will make the situation worse and you will endanger the financial future for the whole family.

There are moments in life when we feel down and things do not seem to get any better. Suicide is not an option and the immediate consequences of your loss will be felt by those you love.

There are countless cases when the insured took its own life, thinking that his dependents will have a chance for a better living with the collected death benefit. In fact, they could have never been so wrong, most insurance companies will deny the financial rights of the family.

The whole process is complicated due to certain suicide clauses included in the contract.  Sometimes companies do not use exactly the word “suicide, but expressions like: “death by one’s own hand”, “intentional self-destruction” or simply “self-destruction”.

Almost all policies contain a suicide provision.  The stipulations may be different depending on the state and company. Life insurance companies do not encourage suicide and they introduce these clauses to prevent someone initiating a policy with the intent of later commit suicide.  The provision usually states that if the insured dies as the result of suicide within the first two years from the date when the policy was issued then any beneficiaries will be denied the death benefits.

The insurance company usually voids the contract and sends back the premiums or a part of the premiums to the beneficiaries, but nothing else more. When applying for a policy, check again the exclusions section, since the suicide provision can differ for each company or policy.

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