Jan 25
Suicide clauses in life insurance policies?
I saw a question on Yahoo Answers that someone posed and it was a valid question so I thought I’d share it. Someone asked, “If someone commits suicide, will their family still receive the life insurance proceeds.” The answer is yes, if it’s after the 2 year contestablility clause.
The contestability clause for life insurance lasts for two years after issuance, during which time it may be rescinded by the insurer for fraud in the application. After this period ends, the insurer is obligated to pay the death benefit, regardless of any fraud in the application.
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February 9th, 2007 at 2:40 am
While it is true that most life insurance policies have a two year suicide exclusion clause, laws vary from state to state on this issue. Missouri, for example has a long-standing statute (Missouri Revised Statutes 376 Section 376.620) declaring any such clause void unless the insurance company can prove to the satisfaction of a judge or jury that the insured intended to take his or her life at the time he or she purchased the policy.
February 12th, 2007 at 9:56 am
Kevin -
Thanks for pointing this important fact out. As you said, most policies do in fact have this 2 year suicide clause, but each state regulates insurance differently so it is important that you as a consumer ask question to make sure what features/exclusions your policy has. Thanks again.