Does Life Insurance Cover Suicide?

Many life insurance policies cover deaths by suicide but only after a certain period of maintaining the policy. Coverage of these types of death usually begins only after two to three years of enrollment due to two policy provisions: the suicide clause and the contestability clause.

The suicide clause of a life insurance policy states that if an insured dies by suicide within a certain period, the death benefit may not be payable. The contestability clause is a period that allows insurers to investigate the cause of death before paying out, and the suicide clause often overlaps with this.

Life insurance usually covers suicide, but providers set rules about timing and terms. Policyholders and beneficiaries should understand these to know what's covered. Life insurance policies often have provisions addressing suicide deaths. These generally include two key clauses: the suicide clause and the contestability clause.

The suicide clause in a life insurance policy typically lasts for the first two years. If the policyholder dies by suicide during this time, the insurer won’t pay the death benefit but will refund the premiums. The contestability clause lets the insurer investigate the death and application details. If discrepancies or fraud are found, the claim may be denied.

Insurers can reset these clauses under certain conditions. For instance, if you increase your coverage amount or change insurance providers, the two years for the suicide clause may restart. Read the fine print and consult with your insurance advisor when making any changes to your policy.

Understanding how the suicide provision for life policies applies to different policy types can help policyholders and beneficiaries know what to expect regarding suicide coverage, ensuring they're fully informed about the terms of their policies.

Insurers can deny a life insurance application based on a person's physical or mental health. If someone has serious mental health issues, insurers may refuse coverage, considering the policy would be a high risk.

Whether life insurance will cover an alcohol or drug-related death depends on the circumstances and the policy’s inclusions. Check out the table below to view different scenarios and whether a provider would cover them.

Avoiding common mistakes can significantly improve the chances of claim approval. Here are some to look out for:

Understanding when life insurance pays out can be confusing, especially during a difficult time. Below are answers to the most frequently asked questions about life insurance and suicide.