Can Insurance be Paid to Beneficiaries in the Case of Suicide?

It’s a popular climax for movies and soap operas. A family member decides to take his or her own life as a final desperate act in order to save the clan from financial troubles. The main goal is for the ones left behind to receive the proceeds of an insurance claim from their martyred relative. However, in real life, is this strategy to save others by taking one’s own life, truly rewarded by insurance companies?

In truth, many insurance companies have a suicide clause. There is no absolute yes or no answer to this question because each case is different. Insurance carriers will look at the reasons behind the suicide attempt before arriving at the decision whether to release the death benefits or not. A person will play an essential role in establishing an acceptable suicide scenario or not. The reality is, if the policy holder has full intent and knowledge of the consequences of an attempted suicide, most likely, the beneficiaries will get nothing. If there is no proof of a pre-existing medical condition or accidental death, a suicide would only result to more despair and financial woes for the entire family.

If an insured person is fortunate enough to survive the suicide attempt, psychological assessment and treatment must be done. Most life insurance carriers encourage this by offering to shoulder the expenses for treatment. Although this is another form of benefit, some families are hesitant to use it because of the stigma involved when it comes to a relative needing psychological help. They need not worry because these are treated as delicate cases by the insurance providers. There are directives to treat situations like this with the highest sense of privacy, in order to protect the individual and family members. Then again, if the person has already suffered permanent damage from the attempt; expenses for treatment and healthcare won’t be covered by any policy. Therefore, the rest of the family will have the burden of providing for the disabled relative. Generally, injuries that are suspected of being self-inflicted in nature are not covered by insurance providers.

Every so often, there are people who desire to purchase life insurance policies with the intent of taking their own lives immediately after. In truth, no payout will be made to beneficiaries in this situation.

If you read the insurance policy, chances are you were able to come across the suicide clause. In most plans, it states that death incidents resulting from suicide shall not be covered by the insurer if it is within two years of the policy purchase. It could also state that absolutely no coverage is provided for deaths due to suicide. These definition variations are dependent on the insurance companies. The clause is a move to dissuade people from considering taking their own lives so that their families can cash out on the claim. There is no immediate gratification, so to speak. Although, there are insurance plans that do not have the suicide clause, these are considered extremely expensive for the average citizen.