There are a lot more concerns around death than the financial implications, yet it is important to understand them all. Suicide is a serious matter and the thought of providing for people after committing suicide, or not, may ultimately influence someone’s decision to commit the act or not. If you or someone that you know is contemplating suicide, please get help. The National Institute of Mental Health’s (a government agency) suicide prevention information can be found here.
That being said, a life insurance company will pay out a claim on death by suicide, but not immediately after the policy was purchased. If they did not have a waiting period, many people who were thinking about suicide would take out a large policy right before they killed themselves. This would lead to very negative consequences for the life insurance company, and incentive suicide to some degree.
Suicide Provision (Rider)
Most life insurance policies contain a “suicide provision”. In fact, state law in most states actually 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.
As mentioned, 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 the 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.
History of Mental Health Issues or Past Suicide Attempts
It is possible that given your specific history, such as a documented case of trying to commit suicide in the past or a history of mental health issues, that a life insurance company will exclude suicide from a covered death. They might do this if they perceive you to have a very high chance of committing the act at some point in the future. If your policy explicitly excludes suicide as a covered death, be aware.
What to do if Suicide is Not Covered
With proper care and medication or therapy, you may be able to show that any mental issues are under control. While not likely, a life insurance company could amend your policy to cover suicides if you apply for reconsideration. More likely, you can apply for a new policy where it is not excluded. You may be able to get a better deal on a new policy than your old policy if you qualify for a better health rating. You can always compare quotes from different providers here and investigate your options. Don’t surrender your current policy until a new policy is issued though, otherwise, you risk being rejected on your new policy and going without coverage altogether. You may also be assigned a lower health rating, or your age may be advanced enough that the price is higher.
Yes my mother has taken out a fraudulent life insurance policy on me. First of all I did not sign the policy nor did I give any kind of consent for her to take out the policy. Second of all she has taken out suicide rates, which in August 2014 I tried to commit suicide and after I found the fraudulent policy I was overwhelmed and did not get the life insurance carrier. Also she told me that after I had tried to commit suicide, that all she could she was dollar signs. She not only took one out on me but on my two children. In her words she told me when I found the policy that she hoped we all three killed and that she was going to cause us so much hell that we would commit suicide. I know that this is not the first time she has tried to fraud insurance companies, back in 2005 I think it was 2005 she burnt her on house down because it was in for closure also a little over a year ago she intentionally slammed on brakes in front of a young girl all for money. Also when she was working at Bapist Village in Waycross GA she intentionally fell over a flower pot and filed it against workmans compensation. She was working at Dr. Marshall Tanner’s office (Ocilla Medical). When she would go to work in the mornings at his office and then get off at lunch, go home change clothes and go to therapy for her arm, injuries due to internally falling. And she ended up getting a large sum of money due to this. Her name is Janice Chaney xxxxx xxx Austin ave east xxxxx, GA. Please look into this and if I’m filling with the wrong company please email me back at or call me at 912-501-4xxx. She is evil and need to be reported. She also need to go to jail. Thank you, Carey Ladson