If someone commits suicide do the family get life insurance payment?

Question

Firstly I'm not planning to off myself!
Just wondered if someone commits suicide does the insurance company pay out on the life insurance or not?

Answer 1

Most policies have a suicide clause which states that no benefits are payable other than a return of the amount of premium paid if the insured commits suicide within 2 years from the inception of the policy.

The reasoning behind this is that if someone decides to commit suicide they are not about to go out and buy a life insurance policy and then wait two years just so a benficiary can get the insurance proceeds.

If the policy is more than two years old then the insurance company will pay.

Answer 2

Because of the change in the life insurance laws about 8 years ago there is a clause that the policy has to be a minimum of 2 years old before suicide is not considered an exclusion.

After 2 years most will pay unless the policy is written to exclude that because of previous mental illness or suicide attempts by the insured.

PS- It is not an absolute no as many people are telling you, I just had two of my clients get paid in the past year when the policy holder committed suicide.

Answer 3

Most insurance companies will not pay off if the death was a result of the person committing some sort of crime, IE; accident while not wearing helmet on motorcycle, seat belt or intoxicated in an automobile, most states consider suicide illegal.
Also as stated before by many people answering, a lot of insurance clauses have a specific suicide clause in the contract.
If you are concerned about your own policy, best thing to do is read it or call an ask a representative.

Answer 4

It depends - in some (very few) states, the insurance company must prove it was suicide - so they usually just pay out & avoid further costs. Most insurance policies have a two-year limit - if you commit suicide within 2 years of taking out the policy, they do not pay, but do if it is later. This is obviously to avoid someone taking out a policy for their families profit - most people will not hold off 2 years when they are contemplating suicide now.

Answer 5

Life insurance policies come with a suicide clause. This clause restricts the payment of the policy benefits if the insured commits suicide within a certain amount of time from taking out the policy.

This period of time is usually two years. In some states it is one year - like in Colorado.

That means if you commit suicide after the specific time frame stated in the policy under the suicide clause, your beneficiary will receive payment of the death benefits.

Therefore, if an insured commits suicide there family can receive the life insuranc epayment if the suicide is committed after the suicide clause period has expired.

I hope that helps! Take care and best of luck.

Answer 6

My understanding (from my wife, who sells life insurance) is that it depends on when the policy was written. I believe the cutoff is two years. The idea is that if you kill yourself in less than two years after buying the policy, then you committed fraud on the insurance company. But after that, it's just another of the myriad ways you might die.

Does it make sense? I don't know. I guess I agree with it, but not sure how I feel about the arbitrary two year period. But you've got to have some line.

Answer 7

It depends on the policy. Some have a time limit.. such as if the the suicide occurs after the policy has been in effect for three years, then they pay. Others don't pay at all.

Answer 8

No. Insurance companies do not pay out for suicides.

Answer 9

It depends on the terms of the insurance policy. Some policies specifically exclude suicide, some don't.

Answer 10

It depends on the policy, which is a matter of contract agreement.

But generally, most policies have an anti-suicide clause that prohibit payment if the cause of death is determined to be a suicide.