Suicide may not be something you think about on a regular basis, but in a study done by Samaritans in 2018, 6,507 people committed suicide in the UK that year.
Death is one of the most difficult situations for anyone. However, if it involved suicide, the situation can become even more confusing, raw or painful. 😟
Most life insurance policies will cover suicide and the family will get the financial relief that they need. It’s not always black and white though, so it’s important you have the right information.
Read more below. 👇
The suicide clause
Most suicide clauses state that there will be no policy payout for suicidal death if the policy is less than 12-24 months old. The exact time period will depend on the individual insurer. We however, do not believe this is right and do not have this clause in our policies.
Does mental illness affect my claim?
Sometimes, and you should be open about it. The temptation may be there to leave out some information when filling out a policy, either because of embarrassment or thinking it’ll get you a cheaper premium. In reality, not disclosing facts can void your insurance altogether.
Depression is seen as a pre-existing condition in the same way as any pre-existing physical illness. So, when filling out your form, your level of risk will be assessed, as well as your medical history, age, and history with mental illness. The underwriter may also request details from your GP. While this may increase the cost of your premiums, your insurance could be voided at any point if there are discrepancies, so it’s best to be open and honest.
There is often a contestability period which will usually last for two years. During this time, claims that were made during the initial application can be investigated irrespective of the cause of death. After this time, there will only be an investigation if there is reason to believe a part of the claim has been fraudulent.
This can affect the suicide aspect of a claim, as suicide cases are often not clear cut. For example, death via a drug overdose is usually deemed a suicide. Any death during this initial period will often mean a delay in payout as an investigation takes place.
It’s important to note that the most common reason for the denial of a claim is due to non-disclosure. Even if the suicidal clause period has finished, and the cause of death was suicide, but important information wasn’t given, this could invalidate the claim. As previously mentioned, it’s always the best idea to be open about your claims.
Most companies will even cover you if a previous suicide has been previously attempted. If this is the case, then a more thorough manual underwriting process would most likely take place.
If you’re struggling
You may be reading this article just as a loved one has passed away, or possibly because you have harmful thoughts yourself. If you’re struggling, there is help.
💔 Emotional stress: there are plenty of ways to get emotional guidance, emergency care or even long-term help. Samaritans is a wonderful resource if you need a place to start.
Samaritans – Number: 116 123 E-mail: firstname.lastname@example.org
For an existing life policy, life insurance will always payout for suicidal death, so long as the information given during the application was accurate and it’s past the suicide clause period. Hopefully, this information has been helpful if you or someone you know has questions regarding life insurance and suicide. If you have more questions about life insurance, Bequest is here for you. Mental health discrimination is not ok. We are busting insurance doors down to be what our generation needs. Ask us!