Suicid And Life Insurance: What's The Verdict?

Suicide is a leading cause of death for people aged 10 to 64. Life insurance policies typically include a suicide clause, which states that the insurer won't pay out to beneficiaries if the insured's death was due to self-inflicted injury within a certain period, usually two years, of the policy starting. This clause is intended to prevent someone from taking out a policy with the intention of ending their life soon after so that their loved ones can benefit financially. After this exclusion period, most life insurance policies do cover suicide, and beneficiaries will receive the full death benefit.

Suicide clauses in life insurance policies

Suicide clauses are a standard feature of life insurance policies. They are designed to prevent individuals from taking out a policy with the intention of ending their life soon after, which would leave their loved ones with financial benefits. The clause typically applies during an exclusion period, which usually lasts for the first one to two years after the policy is issued. During this time, if the policyholder dies by suicide, the insurer may limit or deny the death benefit payout. Instead, the insurer might only return the premiums paid up to that point.

The length of the exclusion period can vary depending on the insurer and state regulations. While most states enforce a standard two-year period, some, like Missouri, Colorado, and North Dakota, have shorter periods of one year. After this exclusion period ends, the life insurance policy generally covers suicide, and beneficiaries will receive the full death benefit outlined in the policy.

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 policies, often provided as part of an employee benefits package, usually include similar suicide clauses to those found in individual life insurance policies. On the other hand, military-focused life insurance policies, like those offered by Veterans' Group Life Insurance (VGLI) and Servicemembers' Group Life Insurance (SGLI), typically pay out the death benefit regardless of the cause of death, including suicide.

Suicide exclusions in group life insurance policies

Group life insurance policies, which are often provided as part of an employee benefits package, typically include a "suicide clause" that prevents the insurer from paying out to beneficiaries if the insured's death is due to suicide within a certain period, usually the first two years, after the policy is issued. This clause is meant to prevent individuals from purchasing a policy with the intention of ending their lives soon after so that their loved ones can receive financial benefits.

The suicide clause in group life insurance policies states that the insurer will not pay out the death benefit to the beneficiaries if the insured's death is due to suicide within the specified exclusion period. This period can range from one to three years, depending on the insurer and state regulations, but it is typically two years. After this exclusion period ends, the group life insurance policy generally covers suicide, and the beneficiaries would receive the full death benefit.

It is important to note that supplemental life insurance purchased through an employer usually includes a standard suicide clause and contestability period. The benefits administrator at the organization should be able to provide accurate information about a specific plan.

In contrast to individual life insurance policies, which typically include a suicide clause, many group life insurance policies do not have such a clause. As a result, if a covered individual dies by suicide, their beneficiaries will typically receive the death benefit.

While group life insurance policies may not include a suicide clause, they usually include a contestability period, typically lasting two years. During this period, the insurer can deny a claim if the insured dies and the insurer finds undisclosed health conditions or discrepancies in the policy application. This period is separate from the suicide clause and addresses different issues.

Contestability periods in life insurance policies

The contestability period gives insurers the right to investigate any aspect of a policyholder's health that could have been misrepresented on their application. For example, if a policyholder dies in a car accident but failed to disclose a history of alcohol abuse, the insurance company can deny the death claim. It's important to note that the misrepresentations don't have to be related to the cause of death. The insurance company can also deny coverage or void the contract entirely if they find that information was intentionally withheld or falsified.

In most cases, if the insured dies by suicide within the contestability period, the insurer may deny the death benefit or only return the premiums paid. However, once this period ends, most life insurance policies do cover suicide, and beneficiaries are entitled to receive the full death benefit.

The contestability period is separate from the suicide clause, which specifically addresses suicide as a cause of death. The suicide clause typically lasts for the same duration as the contestability period and states that the insurer won't pay out to beneficiaries if the insured's death was due to self-inflicted injury within this time frame.

To successfully navigate the contestability period, it's crucial to provide accurate and honest information during the application process. This includes disclosing any pre-existing medical history or lifestyle factors that could affect your risk level, such as smoking or participating in extreme sports. Working with an experienced agent or broker who understands life insurance can also be helpful in ensuring your policy is fully protected.

Getting life insurance after a suicide attempt

Life insurance after a suicide attempt is possible, but it may come with specific challenges. The process will depend on several factors, including the time passed since the attempt, your current mental health status, and the number of attempts. Here are some key things to know and consider when seeking life insurance after a suicide attempt:

Time Since the Attempt

The time that has passed since your suicide attempt is a crucial factor in obtaining life insurance. Most standard life insurance policies in the UK will pay a claim for suicide after the policy has been in place for 12 months. However, if your attempt was recent, within the last few years, standard insurers may postpone your application. The more time that passes, the better your chances of getting coverage. Insurers often look for stability in your mental health over several years.

Current Mental Health Status

Your current mental health status will also impact your life insurance options. If you have a mental health condition that led to your suicide attempt, the insurer is likely to assess your claim based on your specific diagnosis. If you have been stable and treatment-free for a period, this can positively influence the insurer's decision.

Number of Attempts

The number of suicide attempts will also be considered by insurers. Multiple attempts may result in higher premiums or even a decline of coverage. It can be helpful to explain to the insurer if there was a specific trigger for your attempts, such as a traumatic event or mental health condition.

Specialist Insurers

Working with specialist insurers or insurance professionals who deal with high-risk cases can improve your chances of obtaining life insurance after a suicide attempt. They can guide you towards the right coverage options and help you navigate the application process.

Table Ratings and Flat Extras

Insurers may apply table ratings or flat extras to your premium due to your history of suicide attempts. Table ratings are extra costs added to your standard premium based on the insurer's assessment of your risk. Flat extras are specific dollar amounts added to your premium to account for the increased risk. These additional charges may be temporary or permanent, depending on the insurer's evaluation.

Alternative Options

If you have a mental health condition and find that long-term income protection options are not suitable, you may consider Accident Sickness and Unemployment Cover. This short-term income protection policy does not take into account your medical history, including suicide attempts, when applying for coverage. However, any claims made will exclude pre-existing medical conditions.

Travel Insurance

When planning a holiday, it is important to arrange travel insurance, especially if you have a history of suicide attempts. Speak with a specialist travel insurance broker to find the right policy for your needs.

Resources for Support

If you or someone you know is struggling with suicidal thoughts, it is crucial to reach out for help. Resources like the National Suicide Prevention Lifeline (call 988) and the Crisis Text Line (text HOME to 741741) offer confidential support and crisis counselling. These services are available 24/7 to provide assistance and connect individuals to local resources.

Resources for people contemplating suicide

If you are experiencing suicidal thoughts, it's important to know that you are not alone. By some estimates, as many as one in six people will become seriously suicidal at some point in their lives. While your pain may feel unbearable, your crisis is likely temporary, and with help, the pain will pass.

• Recognize the warning signs: Changes in mood and behaviour can be indicators of someone contemplating suicide. This includes withdrawing from social activities, feeling depressed, anxious, irritable, or losing interest in things.
• Reach out for help: Talk to someone you trust, such as a friend, family member, or mental health professional. You can also call or text crisis support lines, such as the 988 Suicide and Crisis Lifeline (988) or the Crisis Text Line (text HOME to 741741).
• Seek professional help: Many people who have suicidal thoughts suffer from mental and emotional illnesses that can be treated with medication and psychotherapy. Research shows that the vast majority of people who receive appropriate treatment improve or recover completely.
• Create a safety plan: Work with a mental health provider or a trusted friend or family member to develop a plan for how to cope and get help when a crisis hits. This can include identifying triggers, warning signs, and healthy coping strategies.
• Stay away from things that might hurt you: Remove or limit access to anything that could be used to harm yourself. This can include firearms, prescription drugs, or other harmful substances.
• Explore online tools and support: There are evidence-based digital tools and websites that can provide support and resources for people struggling with suicidal thoughts. For example, the Virtual Hope Box smartphone app is modelled on cognitive behavioural therapy techniques and has been shown to help people cope with negative emotions.
• Connect with a support community: Seek out support groups or communities, either locally or online, where you can connect with others who may be going through similar struggles.
• Consider medication and therapy: If you don't have insurance, there are still options for receiving treatment. Look for clinics or counselling centres in your area that operate on a sliding or no-fee scale. Some pharmaceutical companies also offer free medication programs for those who qualify.

Remember, reaching out for help is a sign of strength. These resources can provide support and guidance to help you navigate through tough times.

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