Life Insurance Center
Life Insurance And Suicide
Article 11 of 12 in What to Know Before You Buy Life Insurance
Most life insurance policies have what is known as a life insurance suicide clause or life insurance suicide provision. This life insurance suicide clause spells out how the life insurance death benefit will be handled in the event of suicide. Most life insurance policies state that if suicide is committed within the two year contestability period, then your named beneficiary will have their claim denied as the policy can be considered void.
The risk of suicide can also affect how much you pay for life insurance. During the life insurance application process, life insurance underwriters check for things that could give possible red flags for suicide. During the underwriting process, the company will pull credit reports or criminal history back ground checks that could reveal financial debt or trouble with the law, and be statistical indicators of suicide. In this case, your life insurance premiums could be higher. The cost of life insurance depends on how much of a risk you are and any suicidal indicators or tendencies you display shows that you are an increased risk.
If you find yourself as the beneficiary of a life payout that was denied due to suicide, you may have cause to speak with a life insurance lawyer to review your claim. A life insurance attorney would know the right course of action to pursue if your claim was wrongfully denied. Consultations are free and you can find an attorney that works on a contingency fee, so do not hesitate to contact an attorney today.
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