Does life insurance pay out for suicide?

Question

I want to sign up for $1M policy in CA.

Answer 1

In United States, insurance companies has a "Suicide clause" amended to the policy. This say that if a person commits suicide during the first 2 years of the policy, death proceeds will not be paid out. Instead, all premiums that been paid will be refunded.

So, if the person commits suicide after first 2 years, death benefit will be paid out.

Answer 2

Yes, in some cases a life insurance policy does pay for a suicide.

The life insurance policy usually has an "Incontestable Clause" - stating the reasons it will not pay out within the first two years of the policy. In Colorado and a couple other states the incontestable period for a life insurance policy paying out for suicide is only one year.

This means the life insurance company can contest the payment of the death benefit if the death occurs within the contestable time frame.

After the contestable period (usually two years), the life insurance company must pay out the death benefit.

So, if suicide occurs more than two after having taken out the policy, the life insurance company should pay the claim.

I hope that helps you better understand the the life insurance payout provision relating to suicide.

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P.S. - Make sure you understand all exclusions to your life insurance policy.

Answer 3

Got an offer from AARP today prepared especially for me. Yep. Has my name and address printed on it and looks very professional and impressive. If I pay them 80.00 a month for 2 years (If I lived in Missouri or N. Dakota I'd only have to pay for 1 year but I live in NC) then I can off myself and they will give my family 100,000.00! I am 57 now. Yep It's signed by Michael Horan Corp. Vice President for the AARP Life Insurance Program. Gotta tell ya. It's tempting. I have it here at my house if anybody does not believe me. Look it up. Apparently a lot of them are doing it now. Gotta get rid of us Boomers somehow. They wrecked our country, constitution, economy and children.

Answer 4

The standard policy has a two year contingency period. This means that if you die of specific accidents, the Insurance Company has the right to review your case and decide whether or not to pay. This period usually covers suicide. Aswell as sky diving, having undisclosed diseases, and so on. After this contingency period, (usually 2 years as said before) all bets are off and the insurance company has to pay regardless of cause.

Answer 5

It only pays AFTER a set waiting period, usually 2-3 years after the policy was initially taken out.

Answer 6

For a "whole life" or "term" policy, suicide is usually excluded for the first two years or so.

For accidental death policies, suicide is excluded for the duration of the policy, unless the person is legally insane (although this tends to vary by state).

I hope this helps.

Answer 7

Life insurance policy wording usually specifies that the proceeds of the policy will not be paid if the insured takes his or her own life within a specified period of time (usually two years) after the policy's date of issue.

Answer 8

After you have had the policy for 2 years at least is what most companies say

Answer 9

Nothing can be contested after 2 years, even suicide.

Answer 10

not really some do and some do not it is up to the cop and if u payed on time and try to live at last 2 or 4 yrs. then do it i do not no just go if u want to go