Suicide was among the nine leading causes of death for people ages 10 to 64 in 2021. Though life insurance can provide coverage in the case of suicide, many policies have special provisions that limit the payment of benefits.
Key Takeaways
- Many life insurance policies contain a suicide clause or provision.
- Companies typically won't pay a death benefit if the policyholder commits suicide within the first one to two years that the policy is in force.
- Changing a policy can restart the suicide exclusion period.
- Insurance companies may request additional documentation if they suspect suicide as the cause of death.
Life Insurance Suicide Clauses
Insurance companies want to prevent people from having a financial incentive to take their own lives. That’s why many life insurance policies have a suicide clause, also known as a suicide provision.
As defined in their suicide clause, insurance companies typically won't pay a death benefit if the insured party dies by suicide within the first two years of coverage. This period is commonly known as the exclusion period. When the exclusion period ends, the policy's beneficiaries can receive a death benefit if the covered person dies by suicide after that date.
Any changes to a policy, such as adding coverage or converting a term policy into a whole life policy, can reset the clock, and the exclusion period will start over.
Suicide provisions can also vary according to the type of coverage for the insured. We highlight information for each below.
Group Life Insurance
Unlike most individual life insurance policies, many group life policies—the kind of life insurance people often get through their employers—do not have a suicide clause. If a covered person dies as a result of suicide, their beneficiaries typically will receive the death benefit.
Term Life Insurance
With individual term life insurance, beneficiaries can claim the death benefit as long as the exclusion period has ended. If the person dies after the policy has been in effect for one to two years, the beneficiaries are entitled to the full benefit.But if the person dies during the exclusion period, the beneficiaries might receive only the sum of premiums paid to date.
Whole Life Insurance
With whole life policies, the beneficiaries might receive the plan’s cash value even if the covered person dies during the exclusion period. When the exclusion period ends, the beneficiaries can receive the full death benefit and cash value.
How Does an Insurance Company Know If Someone Died by Suicide?
When a policyholder dies and their beneficiaries file a claim, the insurance company will request a death certificate. The death certificate would describe the cause of death and note if the person's death was self-inflicted.
If the death certificate is inconclusive or includes a questionable cause of death, the insurance company may require additional documentation, such as an autopsy report, a medical examiner report, an EMS report, or the person's medical records.
Because deaths by suicide can take longer to investigate, the beneficiaries might experience a delay in receiving the life insurance policy’s benefit.
While the claims process can be more complex and time-consuming, beneficiaries shouldn't let that deter them from filing a claim. They may be entitled to benefits that could help them financially as they try to recover from the tragedy.
What if I'm Denied a Benefit Because of Suicide?
Insurance companies have the right to deny a death benefit payout if the insured party's death is the result of an uninsurable event. But you have the right to question and appeal the insurer's decision. Before you do so, it's important to follow these steps:
- Wait for the insurance company's decision. After the insured party's death, the insurance company must determine the cause of death. If it's determined that you aren't entitled to a payout, the company will send you a denial letter.
- Review the insurance policy and the application. Did the person misrepresent themselves? For instance, insurance companies won't make a payout if a smoker claims to be a non-smoker for cheaper insurance premiums.
- See if your state has protections for beneficiaries against insurance companies to see if the denial meets state rules.
- Contact the insurance company with your appeal. Make sure you have any relevant information to prevent delays, including the insurance application, policy, proof of premium payments, death certificate, and any other supporting documents needed to support your claim.
Can I Get Life Insurance With a Mental Health Illness?
This depends entirely on the insurer. Each insurance company has a list of uninsurable events, which may or may not include certain mental health illnesses. This means you have to do your due diligence and research before you commit to an insurer. Be sure to be transparent if asked on the application about any of your mental health issues, including anxiety and depression. If you aren't honest, this could result in cancellation of your policy or denial of benefits to your beneficiary(s).
Will a Life Insurance Policy Pay Benefits After a Death by Suicide?
Some life insurance policies can provide coverage in the case of suicide, but many of them contain special provisions, called suicide clauses, that limit the payment of benefits.
Does Changing a Life Insurance Policy Affect Potential Coverage for Suicide?
If changes are made to a life insurance policy, including adding coverage or converting a term policy into a whole life policy, that can reset the clock, causing the exclusion period for potential coverage of a suicide to start over.
Could a Suicide Delay Payment of Death Benefits by an Insurer?
Yes, due to additional time often needed by an insurance company to investigate a suicide, benefit payout may be delayed. The insurer may require further documentation, including an autopsy report, a medical examiner report, or the deceased's medical records.
The Bottom Line
Life insurance may provide coverage in the case of suicide, but many policies have provisions that limit the payment of death benefits in these circ*mstances. Benefits also may be denied if the policy is relatively new, usually within the first two years of coverage, which is called the exclusion period.
Many group life policies don't have a suicide clause that affects benefit payments, but most term life policies carry exclusion periods when a death by suicide occurs. With whole life policies, beneficiaries might be paid the plan’s cash value, even if the covered person dies during the exclusion period. However, such provisions shouldn't keep beneficiaries from filing a claim because they may be entitled to benefits that could be helpful in a difficult period.
Help for Anyone Contemplating Suicide
If you or someone you know is suffering from depression or mental health issues, get help now. You are not alone. If you or a loved one is contemplating suicide, contact the National Suicide Prevention Lifeline at 1-800-273-8255 or via live chat. It’s available 24 hours a day, seven days a week, and provides free and confidential support.
