Does life insurance cover death by suicide?

With life insurance, you can have peace of mind knowing that your beneficiaries will be taken care of financially after you die.

However, many people worry that if they ever die by suicide, their beneficiaries may not receive a payout.

So does life insurance cover death by suicide? And does group life insurance have a suicide clause?

Keep reading to learn everything you need to know about how life insurance companies handle suicidal death.

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Read more: How does life insurance work?

Does life insurance pay for suicidal death?

In most cases, insurance companies will pay a death benefit to any beneficiaries you have listed if you die by suicide during your coverage period.

However, most insurance companies have a suicide clause and will only pay the death benefit if your personal insurance policy has been in effect for at least two years.

Will life insurance pay for suicidal death within the first two years of coverage?

If you die by suicide within the first two years of buying a policy, your beneficiaries likely won’t receive a financial payout.

However, your insurance company may give them a refund on the life insurance payments you have made.

Every life insurance company handles suicide clauses differently and some policies don’t have suicide clauses, so you’ll have to check with your insurer to see how the company handles suicidal death.

Read more: How do life insurance payouts work?

Does group life insurance pay for suicidal death?

Term life insurance is the most common type of group life insurance, and it often works differently when it comes to suicidal death.

Typically, if you die by suicide at any point during the term of your policy, including within the first two years of coverage, your beneficiaries will still receive a death benefit. (For more information, read our “Does life insurance cover suicide?“).

However, every policy differs, so it’s important to check with your insurance company to see if your group life insurance policy has a suicide clause.

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Case Study: Life Insurance Coverage for Death by Suicide

Case Study 1: Understanding the Suicide Clause

Jane purchased a personal life insurance policy and died by suicide after two years of coverage. Her beneficiaries were relieved to find out that her policy covered death by suicide after the initial waiting period, ensuring they received the full death benefit.

Case Study 2: Group Life Insurance With Suicidal Death Coverage

Michael had a group life insurance policy through his employer and worried about coverage for death by suicide. He discovered that his policy included coverage for suicide, regardless of when it occurred during the coverage period, providing peace of mind for him and his beneficiaries.

Case Study 3: Personal Life Insurance With Suicide Exclusion

Emily had a personal life insurance policy but died by suicide within the first year of coverage. Her beneficiaries did not receive a financial payout, but the insurance company refunded the premiums she had paid during that time, offering some financial relief.