FREQUENTLY ASKED QUESTIONS

Question – Will death benefits still be paid out in the event of a suicide?

Answer:

Most life insurance policies contain a “suicide provision”.  In fact, state law in most states requires that all life insurance policies include a suicide provision.This provision states that if the deceased dies as the result of suicide within two years (sometimes one year) of signing the life insurance policy, then the policy will be voided and no death benefits will be collected.  If the suicide occurs two years after the life insurance policy was signed, then the life insurance payment will most likely be distributed to the beneficiary.

The reason for this two year provision is that life insurance companies do not want people buying life insurance policies before they kill themselves. It is also deemed to be against public interest to allow “a reward” for suicide. By putting this two year window in, insurance companies protect themselves from desperate individuals seeking to collect a quick payout for their family.  Most people who wish to commit suicide, according to insurers, will not wait two years to do so, hence the two year suicide clause.

If you are unsure about the suicide provision rules in your state, you should definitely check the wording of your life insurance policy. Different policies have different suicide provisions, and different states have different laws regarding these suicide provisions.