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Does Life Insurance Cover Suicide? [2024 Review]

February 17, 202411 min read

How your life insurance will pay for your funeral and burial is one of the most crucial decisions you’ll have to make as a senior customer. There are a lot of unknowns and uncertainties in this process, which can be intimidating.

However, it’s also a chance to prepare in advance and take charge of these unavoidable future events.

Individual life insurance policies that cover these costs are one method you can do this; however, there are other types of policies based on the kind of coverage you want.

We’ll examine the reality of suicide and burial life insurance so you can decide if this kind of policy could be appropriate for you. We’ll address some frequently asked questions regarding the coverage and offer links below so you can learn more.


Suicide and Burial Life Insurance

How does group life insurance treat suicide?

The same death benefit is typically provided by group life insurance, but there is no two-year contestability restriction on suicide claims.

Private purchases of supplemental life insurance, often offered by employers, professional associations, or other groups, are probably subject to a contestability clause. In the first two years following the effective date of a policy, insurers have broad discretion to reject claims.

How to Seek the Right Help at the Right Time

What would a life insurance policy be invalid for? Despite being a difficult choice, suicide has grown to be one of the major issues in many nations. A person who has made the decision to end his or her life does not care about things like financial security, physical health, age, relationships, etc.

It has long-lasting effects for the mourning family in addition to taking the life of the one person who commits it. Moreover, one of those terrible repercussions is having to pay for funeral or memorial expenses after the passing of a loved one.

Each year, approximately 30,000 people commit suicide in the US. Many of these individuals own entire life insurance policies, which may seem strange.

The Truth, Does Life Insurance Cover Death By Suicide

Will the beneficiaries of a life insurance policy receive any financial advantage if the policyholders commit suicide? This is one of the worrying issues that comes to mind when thinking about life insurance and suicide.

To be precise, filing an insurance claim is not always straightforward, especially when the insured has died by suicide. If the insurer rejects their claims, people who lost a loved one must go through a difficult time.

Even if you pay for life insurance, there are rare situations where your family may still be refused claims or benefits.

A life insurance policy, for instance, only covers suicide death if it is obtained two to three years in advance of the insured’s passing. The suicide contestability and insurance policy provision lapse in the event that the policyholder passes away within this waiting time.

To get the most out of your suicide and burial life insurance, you need to be aware of the exceptions. This means that in order to benefit from both burial and suicide insurance, you must be aware of when your policy covers suicide and how to get assistance to remain covered.

When Does Life Insurance Cover Suicide

When Does Life Insurance Cover Suicide

Does life Insurance payouts work always? Does Life Insurance Cover Suicide?

Is Suicide Covered by Life Insurance?

After the contestability clause and the suicide clause have expired, life insurance policies typically cover suicide. Suicidal deaths are frequently covered by life insurance policies once these new suicide clauses become ineffective, which typically happens two to three years after you purchase the policy.

The contestability clause is prolonged for the whole two years of the insurance contract for a purpose, it should be noted. It gives the insurer a variety of grounds to reject or fight the claim.

For instance, it provides the insurer plenty of time to look into the cause of death if they suspect suicide occurred during the waiting period. If a suicide is the cause of death, an investigation into the circumstances surrounding the death may lead to the beneficiary’s life insurance claim being rejected.

The incontestability provision, however, takes effect after this contestable period has passed. This means that, save from very egregious circumstances like fraud or misrepresentation of the policy application, the insurers can no longer fight your claim.

Remember that even a small inaccuracy could result in your suicide insurance claim being denied.

Additionally, the suicide clause’s two-year extension allows insurers adequate time to look into the veracity of your claims. If it is established that you killed yourself on purpose, your insurance can be readily invalidated, and the insurer will reject the claims of your beneficiary. If your death was determined to be a suicide.

Understanding Contestability Provision for Suicide Life Insurance

The Truth about Seniors’ Burial Insurance and Contestability! Although the ramifications of the aforementioned sections are the same, the contestability provision is comparatively broader. It covers a variety of different situations, such as when the policyholder dies as a result of an illegal act, that can result in the beneficiary of the insurance being denied a claim during the waiting period.

To preserve their financial security, life insurers incorporate contestability and suicide provisions in their policies.

One of the unavoidable advantages of the contestability clause is that it renders the policy unenforceable in certain situations, such as when the policyholder presents false information on the insurance application.

The suicide clause, on the other hand, forbids insurers from paying claims if a policyholder meant to commit suicide and bought a policy to provide financial security for his or her beneficiary.

It’s crucial to be aware that your suicide clause or contestability period will reappear if you renew or make changes to your life insurance policy with the same life insurance provider. As a result, you will need to wait an additional two years.

Your claim would be rejected by the insurer if you committed suicide during that time. There won’t be a new contestability period, though, if you simply change the policy with the same death benefits as your prior insurance policy.

Furthermore, your beneficiary’s claim won’t receive any death benefits from the insurance policy if you commit suicide during the contestability period and the insurer confirms it was a suicide.

He or she will, however, be paid the total amount of insurance premiums paid to the company.

When Does Life Insurance Cover Suicide

How Does A Burial Life Insurance Policy Work?

There is such a thing as a suicide burial insurance coverage, but you may not have known that. However, there is a suicide provision in every insurance policy that comes with a minimum one-year waiting period.

In other words, the insurance plan ensures that clients finish off any financial loose ends before passing away. In this sense, burial insurance is one of the life insurance policies that the insurer provides to beneficiaries, along with a number of pre-need bundles.

Let’s quickly review how burial insurance functions.

  • Burial insurance is typically sold to older adults as a way to prevent their loved ones from having to pay for expensive funeral costs after they pass away. It is merely a subset of life insurance, though.

  • Burial insurance differs from many other types of life insurance in part because it is simpler to obtain. Some life insurance firms will even provide you with burial insurance without asking you about your medical history.

  • Helping elderly folks pass away peacefully is a cheap and simple process.

  • The type of life insurance offers average benefits to beneficiaries, but it has the same premium as other insurance plans and is dependent upon the time of purchase.

  • Anyone might be eligible for burial life insurance, especially those who have poor physical and mental condition. Keep in mind that if you choose term life insurance, you might have trouble renewing the policy after the term has expired. The issues won’t arise if you choose permanent insurance, though.

  • If you’re elderly or ill with a sickness and want your family to cover the costs of your funeral, you can also set up a savings account for that purpose.

Additionally, a burial insurance coverage is easy to use. When a policyholder passes away, the beneficiary receives the insurance proceeds, which must be spent in accordance with the terms of the policy. As was already said, it is less expensive and simpler to set up than other insurance products.

That is what justifies purchasing it. A burial insurance coverage can be purchased over the phone or online without a physical examination. The insurance industry knows that seniors are a high-risk population and that their premiums tend to be higher, hence the policy typically targets this demographic.

Burial Life Insurance Policy and Suicide

Knowing what a burial insurance policy is and what the suicide and contestability clauses mean for it is crucial now that you know what it is. If the policyholder kills himself or herself within two years of buying life insurance, the burial life insurance does not provide the beneficiaries with the full death benefit.

The insurance provider may choose to prolong this waiting time to three to four years.

As was already noted, the insurer looks into policyholders’ claims during this time in order to decide whether to accept or reject coverage for intentional death. The beneficiary’s life insurance claims will be rejected if the life insurance providers can show that the death was either purposeful or suicidal and occurred during the waiting period.

Similar to how when you get burial insurance, the information you provided on your life insurance application (risky behaviour or mental condition) must be relevant.

How do I apply for burial insurance with Suicide? 

It’s the same process as applying for burial insurance with other life insurance policies. You will complete an application and submit it online, over the phone with an insurance representative, or both. Before you can begin making premium payments for your new policy, your application must be accepted.

How Does an Insurance Company Know About Suicide? 

Insurance companies will ask for a death certificate if a policyholder’s beneficiaries submit a claim. They can find out from the death certificate whether the victim committed suicide. The insurance company may request additional paperwork, such as an autopsy report, a medical examiner report, or an ambulance report, if the death certificate is unclear or if the cause of death is in doubt.

Some states allow for both doctor-assisted suicide and the right to die with dignity. Many states and regions do not have this regulation, thus insurance firms must determine whether to make payments. You won’t get the death benefit if you purchased your life insurance policy with the knowledge that you had a terminal illness.

Do You Need an Attorney to Seek the Help?

What is a clause that is contestable? Be aware that an insurer may assert that the contestability or suicide provision precludes your reimbursement in any circumstance where the insured’s cause of death is disputed or the consequence of a failed suicide attempt.

Since it might be difficult and differ from case to case, evaluating whether a policyholder committed suicide. In these situations, it is crucial to seek legal counsel from an experienced life insurance case specialist.

The qualified attorney is better equipped to evaluate and analyse the legal wording since they have a thorough understanding of the legal nuances involved with most life insurance plans.

Additionally, hiring a lawyer before buying an insurance policy will help you comprehend the terms of the policy and guarantee that your contract does not contain a suicide provision. If your life insurance policy is in doubt, it increases your chances of recovering under it.

Key Takeaway

In short, beneficiaries of any type of life insurance policy think they may quickly begin receiving guaranteed money as soon as the policyholders pass away.

This is not the case, though. If certain circumstances are not taken into account, beneficiaries may not be eligible to receive money from the insurance policy. Therefore, it is crucial to get legal counsel before signing and sealing any legal insurance arrangement.

When Does Life Insurance Cover Suicide

Conclusion

When determining life insurance premiums, insurance firms consider the fact that suicide is a prominent cause of mortality in many nations. Please get aid from someone who can truly support you if you’re thinking about suicide to prevent the suffering from intensifying until it becomes intolerable. If your policy was cancelled due to suicide, your family would also be left with an unmanageable debt. Contact us immediately to find out how we can work together to safeguard your loved ones in case anything happens and to get estimates on burial life insurance plans; don’t put them through this trying time by taking away one source of potential income!

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