Life Insurance Buying Tips

Does Life Insurance Pay For Suicide?

Filed under: life insurance — Alston @ 7:56 pm January 24, 2012

Life insurance does pay for suicide in many cases. At one time life insurance companies were able to deny claims by alleging that the cause of death was suicide. In some cases, the evidence was ambiguous at best.  Widows and orphans were defrauded in many instances.

A family that should have been the beneficiary of a life insurance policy had to live without that money. The premium paid should have helped to make their lives better. Instead, they had to make do without the death benefits that they expected to receive. The life insurance company did not live up to the guarantee as expected.

This caused a change in the law. Insurance companies can still deny claims based on evidence that the insured killed him or herself but this right was limited. As a rule, the terms of an insurance policy will not allow them to deny claims because of suicide on policies that are beyond their incontestability period.

The standard incontestability period is two years. This means that if the coverage was in place for at least two years a payment to the person listed as the beneficiary should be made. They should expect to receive the death benefits and not a bunch of questions regarding a possible suicide.

Having no limit in the contract regarding suicide clause would also be problematic. A suicidal person who buys a life insurance policy now has to wait two years before executing his or her plans. This waiting period makes it less likely that the people who have a mental illness and/or suicidal thoughts will use the financial gains their family would receive as an additional incentive to end their lives.

Life insurance can help provide the cash your family needs. When an individual with dependents dies or becomes disabled, there is likely to be an amount of money that is taken out of the family budget.

Get the information you need to help your family have the income it needs to survive. You can request free disability and life insurance rates and info on this website. Whether you are looking for a burial policy for seniors, or need information for a family life plan we can help.  You will get rates and contact information for an agent who can provide answers for your questions.

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