Does Life Insurance Pay For Suicidal Death?

Shawn Plummer

CEO, The Annuity Expert

It’s a question that many people ask when they are considering getting life insurance: does life insurance pay for suicidal death? The answer is complicated. In this guide, we will discuss the different factors that determine whether life insurance pays out in the event of a suicide. We will also look at some case studies to help illustrate how this works in practice. So, if you’re curious about how life insurance handles suicides, keep reading.

does Life Insurance Cover Suicidal Death?

Many people think that life insurance policies do not cover suicides. However, this is not always the case.

While it is true that most policies have a contestability period during which the insurer can refuse to pay out in the event of suicide, this only applies to deaths within the first two years of the policy.

After that, the beneficiaries of a life insurance policy are typically entitled to receive the death benefit regardless of how the insured person died. As a result, people who are considering suicide should not be deterred from taking out a life insurance policy. While it is possible that their beneficiaries may not receive the death benefit during the contestability period, they will almost certainly be paid out if they wait until after that period has expired.

Does Life Insurance Cover Suicidal Death Beagle Street

Contestability Period

One of the main things that insurance companies look at to see if they will pay out a life insurance policy is the contestability period. This is a time frame, usually two years, where the company can investigate the death and see if it was suicide. If it is ruled that it was suicide, the company might not pay anything. If it was an accident, then they would usually pay out.

Does Life Insurance Pay Out For Suicidal Death Us

Exclusion Clause

Another thing you need to think about when getting life insurance is the suicide exclusion clause. This clause means that if the policyholder dies by suicide within a certain time frame, usually two years, the death benefit will not be paid out. However, after that time frame has passed, the suicide exclusion clause is no longer in effect, and the death benefit will be paid out if the policyholder dies by suicide.

Next Steps

So, does life insurance pay for a death that is ruled to be a suicide? It depends on several factors, including the policy’s contestability period and suicide exclusion clause. In most cases, if the policyholder’s death is ruled accidental, the insurer will pay out the death benefit. However, if the policyholder’s death is ruled a suicide, the insurer may refuse to pay the death benefit.

If you’re considering getting life insurance, it’s important to understand how your policy would handle suicide. If you have any questions about your policy, be sure to ask your insurer. And if you’re struggling with suicidal thoughts, please get help from a mental health professional or call the National Suicide Prevention Lifeline at 800-273-TALK (800-273-82554).

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Shawn Plummer

CEO, The Annuity Expert

I’m a licensed financial professional focusing on annuities and insurance for more than a decade. My former role was training financial advisors, including for a Fortune Global 500 insurance company. I’ve been featured in Time Magazine, Yahoo! Finance, MSN, SmartAsset, Entrepreneur, Bloomberg, The Simple Dollar, U.S. News and World Report, and Women’s Health Magazine.

The Annuity Expert is an online insurance agency servicing consumers across the United States. My goal is to help you take the guesswork out of retirement planning or find the best insurance coverage at the cheapest rates for you. 

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