Sensitive but Essential: Exploring Life Insurance Payouts in Cases of Suicide

Exploring Life Insurance Payouts in Cases of Suicide

Nobody wants to consider that they or a loved one will commit suicide because it is a complex notion. However, life insurance might give the family monetary stability in a disaster. It can be advantageous to carry life insurance in a trying position since, depending on the type of coverage, some life insurance companies might pay out the death benefit in the event of suicide. 

No Payouts in Cases of Suicide 

It is a prevalent misperception that life insurance policies do not cover suicide claims. This isn’t always the case, however. Although every life insurance policy is unique, many do provide suicide coverage. In reality, roughly two-thirds of life insurance plans contain a suicide provision, according to the Insurance Information Institute. This means that if the policyholder commits suicide within a specific amount of time, typically two years from when the insured purchased the policy, the life insurance company will not pay the death benefit.

If the policyholder dies by suicide after that, the suicide provision is usually void, and the beneficiaries receive the death benefits. Naturally, the beneficiaries will not receive the death benefit if the insured buys the life insurance policy to commit suicide. This is so that the death benefit won’t be paid out if it is discovered during an investigation into a death claim that the policyholder intended to commit suicide. It’s crucial to carefully study the policy if you’re considering getting life insurance to know what coverage you get. This can assist you in making selections and guarantee that your loved ones will receive the necessary care in the event of your passing. 

Are there Some Exceptions to this Rule

The general rule that suicide cases do not qualify for life insurance payouts has several exceptions. Life insurance companies only pay out in suicide situations in limited circumstances. The first situation is when a suicide clause is present in a life insurance policy. This provision provides that the life insurance company shall pay in the event of suicide. This provision is frequently found in life insurance contracts with substantial face values. If the insured bought the life insurance plan within two years of the policyholder’s demise, that is the second situation. 

To determine whether this death was a suicide, the life insurance company may look into the circumstances surrounding the decedent’s passing. The life insurance provider might pay out if they find the death was a suicide. The third situation is when a life insurance policy is explicitly used for suicidal purposes. The life insurance company will nearly always pay out in this situation. 

It’s critical to comprehend life insurance benefits guidelines and restrictions if you’re considering taking your own life. It would help if you always spoke with a life insurance agent or firm to acquire the most precise and recent information. 

Ensure Checking Your Life Insurance Policy in Case of Suicide 

Most people consider the death benefit while considering life insurance. This is the sum of money that is distributed to the designated beneficiary in the event of the policyholder’s passing. What transpires, though, if the policyholder commits suicide? 

When a policyholder commits suicide, life insurance companies frequently refuse to pay the death benefit. This is because life insurance policies often do not cover suicide, considered a self-inflicted death. Some life insurance policies do, however, cover suicide. 

These rules are frequently described as “suicide-only” or “suicide-specific”. The beneficiaries of this insurance will get a death benefit if the policyholder commits suicide. If you’re contemplating suicide, check your life insurance policy beforehand. Your beneficiaries can get the death benefit if you have suicide-specific insurance. Your heirs will not receive anything from the life insurance company if you don’t have a suicide-specific policy. 

Consider Adding a Suicide Clause to Your Life Insurance Policy 

You are often asked if you want to include a suicide clause when you buy a life insurance policy. You may want to think about having a suicide clause in your life insurance policy. If the policyholder commits suicide, a suicide clause in a life insurance policy pays the death benefit to the beneficiaries. The sum that the beneficiaries receive is the death benefit of a life insurance policy. 

Life insurance contracts frequently include the suicide clause at no extra charge. A suicide clause is not present in all life insurance plans, however. If you’re considering purchasing life insurance, be sure it doesn’t have a suicide clause. Contact your life insurance company if you have it to ask if they can add a suicide provision. Whether you’re considering buying a life insurance policy, ask whether any providers have coverage with a suicide clause. 



For many families, discussing life insurance payouts in cases of suicide situations can be a sensitive and challenging matter. Many policies do pay out in the event of suicide, although some may not, and this may be an excellent source of solace and consolation for mourning families. To ensure that the family will receive protection in the event of a loved one’s demise, it is imperative to know the conditions of any life insurance policy and the legal ramifications of suicide.