Suicide and Life Insurance

Suicide is a tragic event that affects families and loved ones all over the world. The effect suicide has on a family is often devastating, and one of the ways to ease the burden of the loss of a loved one is through life insurance. In this article, we will discuss suicide, life insurance, and what happens when these two topics intersect.

What is Suicide?

Suicide, by definition, is the act of intentionally causing one’s own death. According to the World Health Organization, suicide is a global phenomenon, and every year, over 800,000 people die by suicide. Suicide can be caused by various factors such as mental illness, societal pressure, financial strain, or loss of a loved one.

It is important to note that suicide is a sensitive topic, and anyone struggling with suicidal thoughts or tendencies should seek help from a mental health professional.

What is Life Insurance?

Life insurance is a financial product that provides a death benefit to the beneficiaries of the policyholder in the event of their death. Life insurance policies can be purchased by individuals or provided by employers as a benefit to their employees.

Life insurance policies come in different types such as term life, whole life, and universal life. The type of policy an individual chooses depends on their financial goals and needs.

Can You Get Life Insurance if You Have a History of Suicide?

Life insurance companies often require medical examinations and a detailed medical history before issuing a policy. If an individual has a history of suicide attempts or suicidal thoughts, it may be difficult to obtain a life insurance policy.

However, there are options for those who have been denied coverage in the past. Some insurance companies offer policies specifically for those who have a history of mental illness, including suicidal thoughts or attempts.

What is Guaranteed Issue Life Insurance?

Guaranteed issue life insurance is a type of policy that is available to those who have been denied coverage due to pre-existing conditions such as a history of suicide attempts. This type of policy does not require a medical exam, and premiums are often higher than traditional policies since the risk to the insurer is greater.

What is Modified Life Insurance?

Modified life insurance is another type of policy that is available to those who have been denied coverage in the past. This policy has a waiting period before full coverage begins, and premiums are often higher than traditional policies.

What Happens if Someone Commits Suicide and Has a Life Insurance Policy?

If someone with a life insurance policy commits suicide, the death benefit may not be paid out to the beneficiaries immediately. Most life insurance policies have a suicide clause, which means that if the policyholder dies by suicide within a certain period of time after the policy is issued, the death benefit will not be paid out.

What is the Suicide Clause?

The suicide clause is a provision in most life insurance policies that states that if the policyholder dies by suicide within a certain period of time after the policy is issued, the death benefit will not be paid out.

The suicide clause is typically in effect for two years after the policy is issued, but this time frame can vary depending on the insurance company and the policy.

Conclusion

Suicide is a tragic event that has lasting effects on families and loved ones. Life insurance can help ease the financial burden of the loss of a loved one. While it may be difficult to obtain life insurance if someone has a history of suicide attempts or thoughts, there are options available.

If you or someone you know is struggling with suicidal ideation, please seek help from a mental health professional.

FAQ

Q: Can I get life insurance if I have a history of suicide attempts?

A: It may be difficult to obtain life insurance if you have a history of suicide attempts or thoughts, but there are options available such as guaranteed issue life insurance or modified life insurance.

Q: If the policyholder dies by suicide, will the death benefit be paid out?

A: If the policyholder dies by suicide within a certain period of time after the policy is issued, the death benefit may not be paid out due to the suicide clause in most life insurance policies.

Q: What is the suicide clause?

A: The suicide clause is a provision in most life insurance policies that states that if the policyholder dies by suicide within a certain period of time after the policy is issued, the death benefit will not be paid out.