Regardless of age, health condition, or financial status, every individual is highly encouraged to sign up for a life insurance policy as early as they can. It serves as a financial safety net that can surely last a lifetime and can help you and your family cover huge expenses for any unforeseen event. With all the uncertainties in our everyday lives, it is important to think about our future, no matter how young or how healthy are we. Thus, having a life insurance is surely a great advantage over the things that are out of our hands.

Limitations of a Life Insurance

Although there are certain safeguards to ensure that insurance companies will pay out for all confirmed claims, each type of life or health insurance has its own terms and conditions too. Some policies only cover certain types of disabilities, health conditions, and cause of death, while others include all. One of the most looked up questions when talking about life insurance is whether policies cover suicide as a cause of death.

Life Insurance and Suicide

Most life insurance companies will pay out the death benefit to the nominated beneficiaries if the cause of death is suicide. Some companies would explicitly exclude suicide in the terms and conditions of the policy. But if suicide is covered, a certain period between the start of the policy to the time of death is imposed before a claim can be considered as valid. This time frame is usually discussed on the life insurance suicide clause.

Life Insurance Suicide Clause

The life insurance suicide clause should be explained in the terms in full detail. The suicide clause explains that claims may be denied by the insurance company for deaths caused by self inflicted injury, if it occurs within the first two years of the policy. The clause prevents individuals from taking advantage of the policy by committing a planned death so they can leave something behind for their families. This also prevents insurance companies from getting bankrupt from fraudulent activities. Doctor-assisted suicide or when a terminally-ill patient chooses to end his or her own life than to suffer longer is also generally considered as suicide. A representative from the company should be able to explain to you all the important information in the clause.

Suicude Clause and Incontestability Clause

Some people may encounter the Incontestability Clause together with the Suicide Clause but the former is usually a generalization of the latter. It lists other cases wherein an insurance claim may be denied if it took place within the contestability period. Some examples would be death during an illegal act, errors in information that were provided intentionally, and alcohol or drug abuse. It should be your responsibility to ask questions from the representative to avoid rejection of claims in the future.

People suffering from depression with recurring suicidal thoughts should never resort to a life insurance so they can leave something behind for their loved ones. Don’t be afraid to reach out for help and seek early treatment from your friends, relatives, and other volunteer organizations. There are many people who are willing to listen and to be with you in this challenge.

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