Suicide & Life Insurance

Suicide is not always the easiest topic to discuss, but changed guidelines in regards to life insurance polices have made it easier.

Many people believe the common myth that suicide is not covered under any life insurance policies. It is in fact now possible for families to claim on a life insurance policy if suicide was the cause of death.

When it comes to claiming on a life insurance policy, there is no way to sugar coat the fact that it is sometimes hard to make a claim. There are different factors which can contribute to a claim being denied.

Life Insurance cannot be claimed on, if suicide was the cause of death, if the policy is less than 13 months old. Issues can also arise if there has been financial hardship, such as bankruptcy within the family. Each claim however, is treated on a case by case basis.

Although companies will cover suicide now, some people will have a suicide exclusion placed onto their policy, which extends past the 13 months and stays for the duration of the policy. A suicide exclusion may be placed onto a policy if there is a history of mental illness or past attempts at suicide.

Most companies will cover suicide after 13 months, but it is essential to read the company’s Product Disclosure Statement to determine if you are covered.

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