Does Life Insurance Cover Suicide?

What Is a Suicide Clause?

A suicide clause is a provision in a life insurance policy that excludes coverage for suicide deaths. This type of clause is active for a certain period after the policy goes into effect. The exclusion period is two years in most states, but it drops to one year in states such as Colorado, Missouri and North Dakota. If the policyholder dies by suicide within the applicable time frame, the insurance company won't pay the death benefit to the beneficiaries.

This type of clause is designed to prevent a person from buying a life insurance policy immediately before taking their life to provide for their loved ones.

The beneficiaries can receive the death benefit if the policyholder dies by suicide after the exclusion period ends—as long as no other policy terms have been violated.

Learn more: Financial Steps to Take After the Death of a Spouse

What Is the Contestability Period?

The contestability period—separate from the suicide clause—is a time frame in which the insurance company can investigate the policyholder's cause of death and review their application. This period usually lasts for two years after the policy goes into effect.

Once the contestability period expires, the insurer must pay out death benefit claims unless you fail to pay your premiums or otherwise break the terms of your policy.

Does Group Life Insurance Pay for Suicidal Death?

Group life insurance is a type of insurance policy you may be able to purchase through a group you belong to, such as your employer or an organization. These policies typically do not include a suicide clause.

However, there may be suicide clauses and exclusion periods when you buy supplemental life insurance through your employer.

Is Suicide Considered Accidental Death?

The short answer is no, suicide is not considered an accidental death by insurance companies. Accidental death and dismemberment (AD&D) policies usually cover unexpected events like car accidents, falls or drowning. Because suicide is viewed as an intentional act, even in cases of mental illness, it typically doesn't fall under accidental death coverage. Most life insurance policies specifically exclude it from that category.

Learn more: What Are the Different Types of Life Insurance?

What to Do if Your Insurance Claim Is Denied

If your life insurance claim is denied after your loved one dies by suicide, here are the general steps you should take:

• Review the denial letter. The insurance company must give you a written explanation for why it denied your claim. Read the letter and check whether the denial was based on inaccurate information.
• Gather documents and evidence. If you believe you were unfairly denied a death benefit, you can pursue legal action or submit an appeal. Compile your evidence, such as copies of the deceased's medical records and death certificate.
• Contest the decision. Contact the life insurance company to start the appeal process. Your state's department of insurance, state attorney general or a lawyer may be able to help with this part.
• Request a refund. You may be able to get some money back even if your appeal is unsuccessful. Life insurance companies may refund your premiums if they don't pay the death benefit because of suicide, or if they deny your claim during the contestability period.

The Bottom Line

When purchasing a life insurance policy, it's important to understand how the policy works and what's excluded from coverage.

These policies usually contain a suicide clause that excludes coverage when a policyholder dies by suicide. Depending on your state's laws, the clause may last a year or two from the date the policy's coverage becomes effective. Life insurance policies also typically contain a two-year contestability period in which the company has more leeway to deny a claim.

If you're struggling with suicidal thoughts, text or call 988, the Suicide & Crisis Lifeline.