Life Insurance And Suicide: Royal London's Policy

Life insurance policies are often believed to not cover suicide, but this is a misconception. Most leading life insurance providers in the UK will pay out for suicide, but a suicide clause is likely to apply. This clause typically states that if the policyholder dies by suicide within a certain period after the policy is issued, usually within the first two years, the insurer may deny the death benefit or only return the premiums paid. However, after this exclusion period, most life insurance policies do cover suicide, and beneficiaries would be entitled to receive the full death benefit.

Royal London's life insurance suicide clause

Royal London offers a range of life insurance policies to suit your needs. The main types of life cover they offer are:

• Level term life insurance
• Decreasing term life insurance
• Whole of life insurance

Level term life insurance allows you to choose how much cover you want and how long you want to be covered for. If you die while still covered by the policy, it pays out that amount. Your monthly premium stays the same throughout.

Decreasing term life insurance is designed to help repay a repayment mortgage and/or another debt. The amount of cover decreases over the course of the policy as you repay your mortgage. The premiums for this type of policy are usually lower than for level term policies.

Whole of life insurance covers you for your entire life and pays out when you die, regardless of when that is. You can choose the amount of cover you get, but because the policy can last as long as you wish to pay for it, whole-life policies tend to be more expensive than term policies.

Royal London does not explicitly state whether it includes a suicide clause in its life insurance policies. However, it is common for life insurance providers to include a suicide clause, which typically states that if the policyholder dies by suicide within a certain period after the policy is issued, the insurer may deny the death benefit or only return the premiums paid. This period is usually the first one to two years of the policy. After this exclusion period, most life insurance policies do cover suicide, and beneficiaries would be entitled to receive the full death benefit.

If you are thinking about suicide, it is important to reach out for help. Organisations such as the Samaritans, Papyrus, and The Silver Line offer free and confidential support.

Suicide clause time periods

The time period set out in a suicide clause will vary from insurer to insurer, but most set out a time period of between 12 and 24 months. During this time, if the policyholder dies by suicide, the insurer may deny the death benefit or only return the premiums paid. After this exclusion period, most life insurance policies do cover suicide, and beneficiaries would be entitled to receive the full death benefit.

The suicide clause usually restarts if an existing life insurance policy is replaced with a new one. It's important to note that different types of life insurance policies may have specific clauses and conditions that impact coverage. For example, group life insurance paid by an employer doesn't usually have a suicide clause, meaning a payout will still be made to the policyholder's beneficiaries regardless of when the suicide occurs.

In contrast to the suicide clause, the incontestability clause focuses on the accuracy of the information provided when the policy was purchased. This clause typically activates after the policy has been in force for a period of two years, after which the insurer generally cannot deny a claim based on errors or omissions in the application, except in cases of fraud.

Suicide clause and claim denials

Most life insurance policies in the UK will pay out in the event of suicide. However, it is important to note that most policies will have a 'suicide clause' within the terms and conditions of the cover. This clause typically sets out an exclusion period at the start of the policy, during which a death claim will not be paid if suicide takes place. The time period for this clause is usually between 12 and 24 months, but it can vary depending on the insurer and state regulations. After this exclusion period, most life insurance policies do cover suicide, and beneficiaries are entitled to receive the full death benefit.

The suicide clause is intended to protect the insurance company from financial risk by preventing individuals from taking out a policy with the intention of ending their lives shortly afterward. It is also designed to stop vulnerable individuals from committing suicide for the purpose of securing a life insurance payout. The clause usually restarts if an existing life insurance policy is replaced with a new one.

In some cases, a life insurance claim may be denied, even if the suicide occurs outside of the exclusion period. This can happen if there is non-disclosure or non-compliance with the terms of the policy. For example, if the policyholder withholds crucial information during the application about their mental or physical health, smoking habits, or substance abuse, the insurer may deny the claim. It is important to be completely honest when applying for life insurance to avoid any issues with claims in the future.

Additionally, there may be instances where the cause of death is unclear, which can impact potential life insurance payouts. In such cases, the insurer can consider evidence, including the method, timing, and location of death and any documents left by the deceased, to determine if the person took their own life. If a coroner's verdict concludes that the death was a result of suicide during the exclusion period, the policy will be cancelled.

It is worth noting that group life insurance, often provided as an employee benefit, may not have a suicide clause. This means that a payout will still be made to the policyholder's beneficiaries, regardless of when the suicide occurs after the policy start date.

Applying for life insurance with mental health issues

If you have suffered from mental health issues in the past, it does not automatically mean that you will be declined for life insurance cover. Most insurance companies will ask for more information, such as asking you to complete a mental health questionnaire, and it is likely that they will write to your doctor.

If you are unable, for any reason, to relay information to the insurance company about your mental health, it is always best to inform the insurance company. Misinformation or omissions could lead to a declined claim.

If you have suffered from your mental health in the past, you may be asked some additional questions when applying for life insurance, such as:

• The name/type of condition you suffer from
• Whether you have had any specialist referrals or hospital admissions
• Whether you are still suffering
• The severity and regularity of symptoms
• Whether you have had any time off work
• What medication you take, how much and how often

If you have suffered from anxiety, stress or depression, or had suicidal thoughts, in most cases you will still be able to get life insurance. Rather than declining your application, it is likely that you would be offered life insurance with an increased premium (often referred to as a rating or loading) due to the increased risk. It may be that your mental health has been affected by a difficult time, and this will be taken on board by the underwriters when they assess your application. Only those who suffer from severe or recurring mental health issues will find that their application is either postponed or declined.

If you have a history of attempted suicide, getting life insurance coverage can be more difficult, but it’s not out of reach. Insurers evaluate the risk of insuring someone based on their medical and personal history, including mental health.

Table ratings

These are extra costs added to your standard premium based on the insurer’s assessment of your risk. A higher table rating means higher premiums, reflecting the increased risk the insurer perceives due to your history.

Flat extras

Unlike table ratings, flat extras are specific dollar amounts added to your premium. This additional charge accounts for the insurer’s perceived risk of insuring someone with a history of attempted suicide. The flat extra may be permanent or temporary for a certain number of years.

Some other factors to consider include:

• Time since the attempt: The more time that has passed since the suicide attempt, the better your chances of getting coverage. Insurers often look for stability in your mental health over several years.
• Current mental health status: If you’ve been stable and treatment-free for a period, this can positively influence the insurer’s decision.
• Specialized insurers: Working with an insurance professional who specializes in high-risk cases can improve your chances of finding the right coverage.

Getting help for suicidal thoughts

If you are experiencing suicidal thoughts, it is important to reach out for help and support. Here are some steps you can take to get help:

Talk to Someone:

The first step is to talk to someone about how you are feeling. You can speak to a trusted friend or family member, or contact a helpline or support service. It is important to know that you are not alone and that help is available. Some organisations that offer support include:

• Samaritans: Call 116 123 (free from any phone in the UK and Ireland) or email [email protected].
• Papyrus (for those under 35): Call 0800 068 4141, text 07860 039967, or email [email protected].
• The Silver Line (for those over 55): Call 0800 470 8090.
• CALM (Campaign Against Living Miserably): Call 0800 58 58 58 (open daily from 5 pm to midnight).
• Mind: Call the confidential helpline on 0300 123 339 (lines open Monday to Friday, 9 am to 6 pm).
• National Suicide Prevention Helpline UK: Call 0800 689 5652 (open daily from 6 pm to midnight).
• Shout: Text "SHOUT" to 85258 (open 24/7).

Seek Professional Help:

If you are feeling overwhelmed and unable to cope, it is important to seek professional help. You can contact your local NHS urgent mental health helpline, your GP, or an NHS crisis team. They can provide you with support and guidance and help you create a crisis plan to manage your thoughts and feelings.

Stay Safe:

If you feel that you may be in danger of harming yourself, it is important to act immediately. You can call 999 for emergency services or go to your nearest Accident and Emergency (A&E) department. You can also remove any items that you could use to harm yourself, such as medication or sharp objects, and ask someone to keep them safe for you.

Distract Yourself:

Try to focus on the present moment and do something that takes your mind off your thoughts and feelings. Engage in activities that you enjoy, such as spending time with a pet, exercising, reading, or listening to music. Being around other people can also help, so consider meeting with friends or family or going to a public place like a park or a coffee shop.

Create a Crisis Plan:

Consider creating a crisis plan and a crisis box to help you manage your thoughts and feelings. A crisis plan can include a list of people you can contact for support, coping strategies that have worked for you in the past, and things you can do to distract yourself. A crisis box is a collection of items that make you feel happier and calmer, such as your favourite music, photographs of loved ones, or a puzzle.

Frequently asked questions