Does life insurance cover suicide? – Councilor Forbes
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Life insurance companies need to protect themselves against the possibility that a person could purchase a policy with the intention of committing suicide soon after so that their family can receive a life insurance payment.
Suicide is usually not covered in the first two years of a life insurance policy, but is covered after that. This two-year period is known as the suicide clause.
If a suicide occurs more than two years after obtaining a life insurance policy, the life insurance policy will pay a death benefit to the beneficiaries of the policy.
While beneficiaries are not entitled to death benefits if suicide occurs within the first two years of a policy, they may receive a refund of premiums that were paid into the policy prior to death.
The exclusion of suicides includes cases of physician-assisted suicide. Five states allow assisted suicide: California, Colorado, Oregon, Washington and Vermont.
If you are the beneficiary of the life insurance policy, you will need to know the name of the insurer who holds the policy and a certified copy of the death certificate in order to make a claim.
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Help with suicide and depression
If you know a loved one who is suffering from depression, help is available. The National Suicide Prevention Lifeline has a free, confidential 24/7 helpline: 1-800-273-8255.