- When does life insurance cover suicide?
- Questionable life insurance situations
- How to prevent a denied life insurance claim after suicide
When does life insurance cover suicide?
individual liveliness insurance by and large covers suicide so long as it occurs after the policy ‘s suicide article and contestability planning have expired. Once both of these exclusions are no longer in impression, usually two to three years after a policy was purchased, your life insurance policy will typically cover suicidal death .
- Contestability clause: This typically extends for the first two years, during which the insurer can contest or deny a claim for various reasons. If the insurer believes you’ve committed suicide during this period, it will investigate the circumstances of your death and your beneficiary may be denied a claim. Once the contestability period expires, the incontestability clause kicks in and a claim cannot be contested except in serious cases—such as misrepresentation or fraud in your application. Minor misstatements cannot cause a claim to be rejected.
- Suicide clause: Also generally two or three years, this clause gives insurers the ability to investigate claims during this period, and lets them deny coverage if you intentionally caused your own death. If the insurer can demonstrate you intentionally killed yourself or your death was ruled a suicide, your policy will be negated and your beneficiary’s claim denied.
While these clauses are similar, the contestability provision is broader because it besides addresses other events which can cause a claim to be denied during the waiting time period, such as dying during an illegal work. life insurers include contestability provisions and suicide clauses in their policies to protect themselves financially .
The contestability clause allows insurers to void coverage in certain cases, such as if it was given inaccurate data in the life insurance application. The suicide article, on the other pass, protects insurers from having to pay claims if the person who purchased the policy intended to kill themself and leave money to their beneficiaries.
If you change life insurance policies, evening with the same insurance company, your contestability period and suicide article go back into effect. So there would be another waiting period during which, if you committed suicide, your animation indemnity would be negated. however, this is not by and large the lawsuit if you just convert your life indemnity policy .
For exemplar, if you had a term animation policy policy that was converted to a whole liveliness indemnity policy with the same death benefit, you would not enter a fresh contestability period. But if you had two condition life insurance policies and decide to switch to a single policy with a larger face value, the suicide article and incontestability article would begin again .
If you die during the contestability period and it ‘s determined to be a suicide, your beneficiaries will not receive the policy ‘s death profit, but they may receive the total of premiums paid. however, if you had a cash value life insurance policy and had borrowed money from it, the sum of your policy lend would be deducted from the payout your family would receive .
Does group life insurance cover suicide?
Group life policy, such as through an employer or organization, covers suicide differently than individual life policy. If your group life indemnity is entirely paid for by your employer, it will generally cover suicide with no restrictions during the first two years. On the early hand, if you purchased auxiliary life indemnity from your employer, that will likely include a suicide or contestability clause .
Does military life insurance cover suicidal death?
Members of the military and veterans who qualify for biography policy through Veterans Affairs are generally covered in cases of suicide. military life indemnity policies VGLI and SGLI include coverage for suicide, as there’s no contestability period or suicide clause .
Questionable life insurance situations
Most life sentence insurance policies cover “ natural death, ” which can include accidental death, suicide, health issues and a assortment of natural causes, so long as none of the policy ‘s exclusions are triggered. The challenge for beneficiaries is that there are questionable situations in which it may be indecipherable if a death was a suicide. In that character, the death could be contested during the suicide clause waiting period. There may besides be issues if another ejection in the condense was triggered, such as the dangerous bodily process or illegal activity exclusions .
Does life insurance cover ‘death with dignity’?
so long as the contestability and suicide clauses have expired, your biography policy policy should cover doctor-assisted suicide, besides called “ death with dignity. ” however, you would need to consult your policy document to make sure there are no additional exclusions that would void your policy .
For case, an illegal activity article could prevent your beneficiaries from receiving the death benefit if you died from doctor-assisted suicide in a manner that did n’t comply with regulations. There are only seven states, plus Washington, D.C., where death with dignity is legal in certain scenarios :
- District of Columbia
Does life insurance cover drug overdose or alcohol?
Life policy may cover death due to drug overdose or an alcohol-related death, but it depends on the circumstances of the event and your policy ‘s exclusions .
An accidental overdose, such as if you accidentally took too much of a prescribed medication, will typically be covered so long as your medications and the reasons for taking them were disclosed when you bought life insurance. The insurance company can contest a claim if it occurs during the contestability period or suicide article waiting period, but the insurance company would need to provide tell that your end was designed.
Since it ‘s impossible to ask the cover of their intent, and both the insurance company and beneficiaries may have evidence supporting their subject, accidental death may not constantly be covered by life indemnity .
death due to an illegal drug overdose during the contestability period will broadly be denied. even if it ‘s not considered suicide, the contestability article besides can cover death during illegal acts. Once the period of contestability and the suicide clause have ended, whether a claim is paid depends on whether you disclosed all relate information in your application—such as attending a drug treatment program. Payment besides depends on whether your policy has extra clauses, such as a dangerous activeness or illegal activity ejection .
Alcohol-related deaths are similar. If you failed to disclose anything about your mental health, a history of alcohol pervert or discussion, or information about your drink demeanor, your family may not receive a payout. And if the insurance company was able to find evidence, such as testimony of witnesses, that you ‘d intentionally tried to kill yourself, they would be able to reject the claim during the waiting time period .
How to prevent a denied life insurance claim after suicide
All individual life policy policies come with some sort of waiting menstruation after you ‘ve purchased coverage. “ No waiting period ” policies generally refer to ones that do n’t require you to wait for aesculapian exams or test results before coverage goes into impression .
The best thing you can do to make indisputable a claim is n’t denied is to disclose all relevant information when purchasing your life insurance policy. It may be hard to do so and you may be concerned about having your application rejected, but providing false information can easily cause your kin ‘s claim to be rejected .
Whether you ‘ve had suicidal thoughts, previously attempted to commit suicide or have a history of genial illness, broadly some insurers will cover your risk. While it may require you to apply with multiple life insurance companies, there are barely a few issues, such as multiple suicide attempts, that will prevent you from finding coverage with at least one insurance company .
When you apply for a life policy policy, you should have records of and be upfront about :
- Any history of drug or alcohol use, abuse or treatment
- All medications you’ve taken or are currently taking
- Any diagnosis or treatment for mental health conditions, such as depression
- Participation in any risky activities, such as skydiving
Depending on the information provided, your life indemnity company may limit the size of your end benefit, offer higher rates or add exclusions to the policy. But failing to disclose any of these details may mean you could pay thousands of dollars in premiums precisely to have your beneficiary not receive requital after your death .
In addition to disclosing all relevant information, you should provide your beneficiaries with a copy of your life policy policy and make them companion with the terms. It ‘s common for a beneficiary to be required to provide a death certificate and information on the lawsuit of death. This will help your beneficiaries in making a claim and provide the details needed to address any issues with the insurance company.
Contesting a life insurance claim denial
An insurance company may contest a life insurance claim if it believes the insure died from suicide during the contestability period or suicide clause waiting period. The insurance company will typically defer to jurisprudence enforcement or the aesculapian examiner ‘s rule, but in some cases, it may launch its own probe. In these cases, the life insurance company may consider :
- The death certificate
- An autopsy report
- Hospital reports
- Testimony from friends, family or witnesses
- The insured’s medical and mental health history, including records of psychiatric care and medications
- Any evidence indicating drug or alcohol abuse or illegal behavior
- Weapons purchases
- Anything that could be considered a suicide note
While the burden of proof lies with the insurance company to demonstrate the guarantee died ascribable to suicide, the caller can deny requital, and beneficiaries may have to contest the claim denial in order to receive a death benefit. If your claim is denied by the insurer and you believe the reason to be incorrect, you may need to bring legal action in order to receive a payout. Some situations are debatable, such as an overdose from order medicine, but you ‘re at least more probable to receive a liquidation by contesting the life indemnity company ‘s decision .
State laws for suicide and life insurance
If you disagree with an insurance company ‘s decision to deny a claim due to suicide, you may want to consult your submit ‘s laws, as many states have protections in place for you as a beneficiary. In Texas, for case, a policy ‘s contestability menstruation can only extend for up to two years, and insurers are restricted in applying new suicide clauses to convert policies. In California, you typically have two to four years during which you can sue to contest a contract. besides in Texas, a life policy policy ‘s contestability period can lone extend for up to two years .