Does Life Insurance Pay If You Commit Suicide?


How is suicide handled in a life insurance policy? Does Life insurance Pay If you Commit Suicide? Suicide is defined in the dictionary as “the act of killing oneself intentionally.” Suicide has been called “a permanent solution to a temporary problem.” This unfortunately, is not an uncommon situation in modern day America because people live under huge stress. Many people have a hard time dealing with the issues of everyday life.

Sadly, some are overly consumed with the issues in the world and the problems they’re dealing with. Because they cannot cope they decide to take their own lives, due to hopelessness. The situation in most cases can be prevented, however most people fail to identify the causes before its too late. This article address the life insurance suicide myth. The belief that you can buy life insurance then commit suicide so that your family “gets paid” is a myth.

Suicide Is A Growing Problem

It is important to mention that in the United States the gender group that attempts the most suicides is the females; however, they are not the gender with the highest suicide rates. Although females attempt to kill themselves more than males, it is males that die more every year because of suicide. Experts say that’s because males are more violent, when they decide to take their own lives they do so convincingly. A woman might try to kill herself by taking a bunch of pills, while a man may use a gun to commit the act.

“Some studies have shown that for every death by suicide, 200 people have attempted suicide and 400 [other] people have thought about it.”—THE GAZETTE, MONTREAL, CANADA.

In the year 2002 as estimated by the World Health Organization there were approximately 31,595 suicides in the United States and with so high numbers one can only imagine the significant of those numbers in the medical and insurance industry.

When speaking of life insurance it is hard for someone to imagine the word suicide. After all, a person insures oneself to take the risk of the economic burden away from their loved ones. A person committing suicide thus is not sound in mind when deciding to take their own life. They do not fully grasp the emotional cost for family, loved ones and significant others.

Will the Life Insurance Company Pay the Death Benefit In The Case of Suicide?

Each life insurance company handles their policies differently. It is important to read the life insurance policy carefully regarding what would happen if a person commits suicide. Will the company pay the full death benefit? Every life insurance company policy protects the insurance company from individuals committing suicide soon after buying life insurance.

If a company does not specify anything about suicide within their contracts then more than likely they will have to pay the beneficiary for the amount covered I the policy. If the insurance policy is a term one, then they will have to pay the full amount the policyholder chose to purchase at the time of the contract signing. On the other hand, if the policy is a permanent one then the beneficiary will get a death benefit equal to the cash value (or savings portion) of the policy.

Two Year Suicide Provision In Your Life Insurance Policy

As we mentioned earlier there is a life insurance suicide myth that is simply not true. An insurance company will not pay the death claim if you take your own life soon after buying the policy. Most if not all life insurance policies have prepared for the increasing suicide rates in the United States. Life insurance companies have what is called the “suicide provision” in their contracts. This provision simply states that if a person commits suicide within the first two years from the date of the policy, then the beneficiary in the policy will not be allowed to have any money whatsoever.

What happens if the policyholder decides to kill himself or herself after those two years have passed though? We discussed the answer to this question in the last paragraph. The beneficiary will be given the money depending on what type of policy the insured had before his or her death.

Why is there a two-year period though?

Insurance companies have been trying to prevent people from buying their products with the idea of just killing themselves. This life insurance suicide myth, that their families will get out of financial trouble is a reason many commit suicide.

They back their claim up stating that statistics lets them see that if a person is planning on taking their life, they will not wait for a clause in order to achieve what they want.

It also discourages an emotionally charged person that has a religion or cause for which they would die for. Some individuals buy life insurance for the fact that they will attempt a suicide mission in the future.  Or they want to fund their religious or terrorist cause, therefore insurance companies protect themselves with the two year period. Most persons do not wait two years before taking their own life or may change their mind in the meantime.

While suicide is a grim subject, it’s important for anyone buying life insurance to understand the policy provisions that exclude suicide. This is important because your loved ones are depending on you for financial protection.

Life Insurance Suicide Myth

Why even ask the question “Does Life Insurance Pay If You Commit Suicide?” How much better it is to contemplate living when under great stress instead of ending your own life. Even in cases where the situation seems grim, there is something you can change: your outlook on the situation. You become more likely to view things from a more positive standpoint when you accept what you cannot change. You’re also more likely to find ways to cope with the situation than resort to drastic means to end it.

To find out about low priced life insurance options available, please click on our “View Your Quotes” button.  Or you can speak with a licensed agent by calling  866-936-3831. Gary W Blackmon is helping customers from California to New York find cheap life insurance.