Life Insurance After A Suicide Attempt: What's The Wait Time?

Life insurance policies typically include a suicide clause that prevents the insurer from paying out the claim if the insured's death was due to self-inflicted injury within a certain period, usually two years, from the start of the policy. This clause is meant to prevent individuals from purchasing a policy with the intention of taking their lives soon after so that their loved ones can receive financial benefits. After this exclusion period, most life insurance policies do cover suicide, and beneficiaries are entitled to receive the full death benefit. If you have a history of attempted suicide, obtaining life insurance coverage can be more challenging, but it's not impossible. Insurers may use table ratings or flat extras to evaluate the risk of insuring individuals with a history of mental health issues.

Life insurance suicide clauses

Most life insurance policies include a suicide clause that prevents the insurer from paying out the claim if the insured's death was due to self-inflicted injury within a certain period from the start of the policy. This period is typically two years but can range from one to three years depending on the insurer and state regulations. The clause is meant to protect the insurance company from financial risk by preventing an individual from taking out a policy with the intention of ending their life shortly afterward.

During the exclusionary period, if the policyholder dies by suicide, the insurer may limit or deny the death benefit payout. Instead, they might only return the premiums paid up to that point. After this exclusion period ends, the life insurance policy generally covers suicide, and the beneficiaries receive the full death benefit as 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, military-focused life insurance policies like Veterans' Group Life Insurance (VGLI) and Servicemembers' Group Life Insurance (SGLI) typically pay out the death benefit regardless of the cause of death. Group life insurance policies, on the other hand, usually include similar suicide clauses to individual life insurance policies.

If you have a history of attempted suicide, obtaining life insurance coverage can be more challenging but is not impossible. Insurers evaluate the risk based on medical and personal history, and the time since the attempt will be a factor in their decision. Working with a specialised insurer who deals with high-risk cases can improve your chances of finding the right coverage.

Getting life insurance after a suicide attempt

If you have a history of attempted suicide, you may face challenges in obtaining life insurance coverage, but it is not impossible. Here are some key things to keep in mind:

Time since the attempt

Insurers often look for stability in your mental health over several years. The more time that has passed since your suicide attempt, the better your chances of getting coverage.

Current mental health status

If you have been stable and treatment-free for a period, this can positively influence the insurer's decision. It is important to address any mental health concerns and seek professional help if needed.

Table ratings and flat extras

Insurers evaluate the risk of insuring someone based on their medical and personal history, including mental health. Table ratings refer to extra costs added to your standard premium based on the insurer's assessment of your risk. Flat extras, on the other hand, are specific dollar amounts added to your premium to account for the insurer's perceived risk. These additional charges may be permanent or temporary.

Specialized insurers

Working with an insurance professional who specializes in high-risk cases can improve your chances of finding the right coverage. They can guide you through the process and help you navigate any challenges.

Be transparent

When applying for life insurance, it is important to be transparent about your mental health history, including any attempts. Failing to disclose this information could result in the cancellation of your policy or denial of benefits.

Group life insurance

Group life insurance, often provided as an employee benefit, typically does not include a suicide clause. This means that if you are covered by group life insurance through your employer, your beneficiaries may still receive the death benefit in the event of suicide.

Understanding suicide clauses

Most individual life insurance policies include a "suicide clause," which states that if the policyholder dies by suicide within a certain period, usually one to two years, the insurer may deny the death benefit or only return the premiums paid. After this exclusion period, most policies do cover suicide, and beneficiaries are entitled to the full death benefit.

Incontestability clause

Life insurance policies also include an incontestability clause, which typically activates two years after the policy goes into effect. After this period, the insurer cannot deny a claim based on errors or omissions in the application, except in cases of fraud. This provides added security for policyholders and their beneficiaries.

Policy changes

It is important to note that changing your life insurance policy, such as adding coverage or converting a term policy to a whole life policy, can reset the exclusion period for suicide. This means the clock starts over, and the suicide clause will apply again.

If you are considering life insurance after a suicide attempt, it is important to carefully review the terms and conditions of different policies and consult with specialized insurers to find the coverage that best suits your needs.

Contestability period

The contestability period is a critical aspect of life insurance policies, allowing insurers to investigate and potentially deny claims if undisclosed health conditions or discrepancies are found during this time frame. Typically, the contestability period lasts for two years after the policy is activated, and it is separate from the suicide clause.

During the contestability period, insurers have the right to thoroughly investigate a death claim. This investigation can include examining underlying mental health conditions, addiction, substance abuse, or other high-risk behaviours. If any information is discovered that should have been disclosed during the application process, the insurer may deny the claim.

The purpose of the contestability period is to protect insurance companies from individuals who might take out a policy with the intention of ending their lives soon after. By having this period in place, insurers can mitigate their financial risk.

It is important to note that the contestability period can vary in length, depending on the insurer and state regulations. While most states enforce a standard two-year period, some states, like Missouri, Colorado, and North Dakota, have shorter periods of one year.

The contestability period has significant implications for beneficiaries. If the policyholder dies by suicide during this period, the insurer may limit or deny the death benefit payout. Instead, they might only receive the premiums paid up to that point.

After the contestability period ends, the life insurance policy generally covers suicide, and beneficiaries will receive the full death benefit as outlined in the policy. This means that if the policyholder dies by suicide after the contestability period, the beneficiaries can expect to receive the financial support as intended.

It is worth noting that making changes to a life insurance policy, such as adding coverage or converting a term policy, can reset the contestability period. Therefore, it is crucial for policyholders to be aware of the terms and conditions of their specific policy.

Incontestability clause

An incontestability clause is a provision in a life or disability insurance policy that prevents the insurance company from canceling the policy based on misstatements in the policy application after the insurance has been in effect for a certain period, usually two years. The incontestability clause is one of the strongest protections for a policyholder or beneficiary. While many other legal rules for insurance favor the insurance companies, this rule is notably and strongly on the side of the consumer.

The incontestability clause in life insurance policies is one of the most powerful protections for policyholders or beneficiaries. While other legal rules for insurance tend to favor insurance companies, this rule strongly supports the consumer.

The incontestability clause prevents insurance companies from voiding coverage due to a misstatement by the insured after a specific amount of time has passed. A typical incontestability clause specifies that a contract will not be voidable after two or three years due to a misstatement. In most states, if the insured person misstates age or gender when applying for life insurance, the insurance company may not void the policy, but it can adjust death benefits to reflect the policyholder's true age.

The purpose of incontestability clauses is to encourage insurance companies to underwrite policies before their issuance and not after a claim is submitted, and to prevent insurance companies from canceling coverage years after a policy is issued. Incontestability clauses serve an important purpose. They protect individuals who buy insurance from an unjustified claim denial and cancellation of their policy years after the insurance coverage has been purchased. Such provisions also give insureds peace of mind that once their coverage has been in effect for more than two years, an inadvertent misstatement or omission on their policy application cannot be used to defeat coverage unless the insurance company can prove the error was deliberate and made with the intent to deceive.

The incontestability clause is a key provision that activates after a life insurance policy has been in force for a specific period, typically two years. Once this period ends, the insurer generally cannot deny a claim based on errors or omissions in the application, except in certain cases of fraud. This means that after the initial contestability period, the insurer no longer has the right to investigate for misrepresentation during the application process and must pay out the death benefit proceeds.

Appealing a denied claim

Most life insurance policies include a "suicide clause" that prevents the insurer from paying out the claim if the insured's death was due to self-inflicted injury within a certain period from the start of the policy. This period is typically two years but can range from one to three years depending on the insurer and state regulations. If the insured commits suicide after this exclusion period expires, the insurance company cannot use suicide as grounds to deny payment of a death benefit.

If your life insurance claim is denied, it is important to understand the insurer's reasoning and the steps you can take to challenge the decision. Here are some steps you can take to appeal a denied claim:

• Carefully review the insurer's denial letter: Understand the specific reasons for the denial and the terms of your policy. Look for any discrepancies or errors in the denial letter.
• Gather relevant documentation: Collect any relevant documents, such as the insured's medical records, investigative reports, police reports, autopsy findings, and medical examiner reports. These documents can help support your case and identify any discrepancies in the insurer's decision.
• Understand your rights under state laws: Different states may have specific protections or recourse available for denied claims. It is important to know your rights and any legal options you may have.
• Consult with an experienced attorney or insurance professional: Seeking legal or professional advice can greatly improve your chances of successfully appealing the denial. They can guide you through the process, help you build your case, and ensure that your rights are protected.
• Remain objective and diligent: It is important to approach the appeals process objectively and diligently. An attorney or insurance professional can help you navigate this process effectively.

It is important to note that if the denial is based on the suicide of a loved one, there may be legal recourse to fight the denial, especially if the death occurred outside of the exclusionary period or if there are questions about the cause of death. In such cases, consulting with an attorney who specializes in suicide exclusion denials can be beneficial.

Frequently asked questions