Life insurance is a bond between a life insurance corporation company and an individual guarantor who accepts to pay an amount of money to the claimant after the death of the guarantor. The major aim of life insurance is to offer economic protection to the family members or the individuals who relied on the dead person left away. Find out here Does life insurance cover suicide.
Suicide is a voluntary act of killing yourself. It is considered a dreadful affair which can have a destructive influence on the family members and people connected to the
In matters of life insurance suicide is usually covered under the group life insurance policy but there are several conditions and prohibitions. Many life insurance policies consist of a suicide clause which states if an individual who is insured expires by suicide within a short period after the insurance policy is invested (typically 2 years) the insurance corporation company does not pay the death benefit recipient.
These clauses have been created to avoid individuals from buying life insurance schemes with the thought of executing suicide very early to offer financial profits to their family members. Though after the attempt of suicide clause gets expired the life insurance policy will pay the full death benefit money to the beneficiary no matter the whether the person has died of accident or suicide.
It is very essential to note that every insurance policy scheme can have distinct provisions concerning suicide attempts. and it is necessary to properly go through the papers and learn to understand the terms and conditions before buying them. If you are aware of someone who is struggling with suicidal ideations or mental imbalances, and it is essential to reach out for help from a healthcare expert or crisis help service.
1. Does Life Insurance Cover Suicide?
Life insurance corporation usually covers suicide but there are many prohibitions and restrictions. Some of the life insurance policies have a separate suicide clause that mentions if the insured individual expires by suicide within a short period immediately when the policy has been bought (2 years) the insurance corporate company will not give you the death benefit to the successor.
This suicide clause is created to avoid individuals from investing in an insurance policy scheme with the thought of attempting suicide to get offered life insurance pay to their family members. The question arises does life insurance pay?
Though when the suicide clause gets lapsed the individual life insurance policies will pay the full money of suicidal death benefit to the grantee no matter whether the person has expired of an accident or attempted suicide.
It is to remember that every life insurance corporation scheme has various facilities concerning the suicide clause so you must read the documents carefully and learn the terms and conditions properly of the policy you choose to invest in.
2. Types of Life Insurance Policy and Suicide Covers
The two main types of life insurance policies are as follows:
2.1. Term Life Insurance
Term life insurance policies cover a particular period of about 10,20,30 years. If the insured individual expires within the term period of the policy, there is the advantage of the death benefit the company pays the amount to their family member or the nominee of that policy.
Term life insurance has a suicidal clause and if the individual expires by attempting suicide with him during the suicidal clause period of two years the insurance company pays the full death benefit amount to the family of that insured individual.
2.2. Permanent Life Insurance
Permanent life insurance policy scheme offers coverage for the whole life of the insured individual till all the interest premiums are paid. There are many types of permanent life insurance policy schemes like Whole life insurance policy, Universal life insurance and variable life.
This policy may have distinct facilities concerning suicidal coverage, but they too have the same suicidal clause as the life-term policy. The period for the suicidal clause is 2 years.
3. Factors Considering if Suicide is Covered
The main factors considering whether the suicidal clause is covered by the life insurance policy scheme differ relying on the creation of the policy and the insurance corporation company. The following factors can be taken into contemplation:
3.1. Suicidal Clause
Many insurance policies have added a suicidal clause that defines the period when suicide is not covered. The period is two years from the time when the policy is delivered.
3.2. Intention
If the insurance company considers that the person who was insured was in the intention of committing suicide when the individual was investing in it. It can affect whether the policy covers the suicidal clause or not.
3.3. Kind of Policy
The kind of insurance policy also affects whether suicidal coverage is there or not.
3.4. Pay the Premium Amount
If the person who purchased the policy was not able to pay their premiums paid or permitted the life insurance policy to lapse the insurance policy must not cover the suicide clauses.
3.5. State Ordinances
State ordinances may influence whether the suicide clause is covered or not by the life corporation company. Many states have some regulations that offer insurance policies to pay the death benefits despite the reason the death occurred because of an accident or suicide.
It is essential to read all the documents and learn to understand the terms and conditions of the policy before investing and reach out to the insurance policy agent or financial expert for queries related to suicide coverage.
4. Understand the Influence of Suicide on Beneficiary
Suicide attempts can be a destructive influence on the family members and the close ones left behind the individual and it can also trouble the beneficiary for an insurance policy matter. The following are approaches to suicide can influence the beneficiary’s claim:
4.1. Psychological Trauma
The immediate loss of a dear one because of a suicide attempt is psychologically traumatic and devastating for the beneficiary. The beneficiary experiences heavy grief, rage, distress and various hard emotions.
4.2. Economic Burden
Suicide can lead to bad consequences for the beneficiary with the critical economic burden. Especially if the expired person was the only breadwinner or had before the burden of debts left behind.
The death benefit from insurance policy schemes can offer economic relief funds but if the insurance policy of the company does not cover suicidal coverage or if the suicidal clause is not lapsed beneficiary may not get any payout.
4.3. Shame and Discriminations
Suicide is still considered a shame in some societies and beneficiaries may suffer from discrimination, criticism, and fault from the public. This can become the reason for them to cope with the loss of their dear one and it gives psychological distress.
4.4. Law and Administration Matters
Beneficiaries may need to explore complicated law and administration procedures to claim the suicidal benefit from the life insurance company. Especially if there are controversies or tough challenges connected to the reasons for the death of the insured person.
It is essential to remember there are means present to help the beneficiary of suicide reach out including counselling sessions, support associates and legal guidance. If you find someone struggling with the influence of attempting suicide it is mandatory to seek support from healthcare excerpts or support management.
5. How Can a Beneficiary Claim Suicidal Coverage?
When the insured person expires the beneficiaries of the life insurance can claim but the procedure can be more complicated than the normal death claim procedure. The following are stepping a beneficiary can take when planning to claim suicidal coverage benefits:
5.1. Reach Out to Insurance Company
Firstly, the beneficiary should reach out to the insurance company to make the company aware of the death of the insured person. Then the insurance company may offer pieces of information on how one can apply for suicidal coverage benefits.
5.2. Submit the Documents
The beneficiaries are expected to submit the required documents the insurance company needs like the death certificate of the insured individual to claim the benefits.
5.3. Hold on for Inspection!
When the insured individual expires by suicide attempt the life insurance management usually inspects to resolve whether the death is covered or not in the insurance policy. This inspection involves scrutiny of the insured person’s medical history and also interviews e family members and close ones or any other connection to that person.
5.4. Take the Claim Judgement
When the inspection is finished the insurance company will take the opinion on the life insurance claim. If the insured individual is no more because of a suicide attempt within the suicidal clause period same death benefit is finite or not given at all.
If the suicide is covered by the insurance policy the family members will get the suicide benefit accordingly to the regulations of the insurance policy.
5.5. Take Legal Guidance
If the claimant is not happy with the life insurance policy company’s judgement, they may reach out further and seek legal guidance to challenge the judgment.
Suggested Reading: What does Liquidity Refer to in a Life Insurance Policy: 13 Top Facts to Know
6. Final Words
At the end of this article, Suicide is usually covered by a life insurance policy but with some restrictions and prohibitions. The suicidal clause in an insurance policy usually mentions that the insured individual expires by suicide attempt within the period after every investment is done (2 years) the death benefit is finite and may not be given. This is to avoid people from investing for the benefits to commit suicide.
The policyholder should read their documents carefully and learn to understand the terms of the policy before proceeding to make the investment and check the benefits and suicidal coverage information.
It is essential to remember that suicide is a crucial matter, and that support is accessible to everyone who struggles with suicidal ideas or feelings. If anyone around, you struggle or is struggling with it you can reach out to the National Suicide Prevention Lifeline numbers 1-800-273-TALK for help and facilities.
Last Updated on by aashruti013