Does life insurance cover suicide? Yes, but there are some important things you need to know because this is a complicated topic. 

OK, I must admit this is one of those posts I hesitate to write. My wife and I have people in our family who have mental challenges, and we know firsthand that life is not always easy.

One of my wife’s best friends committed suicide many years ago. Sadly, loved ones left behind always wonder if there is something they could have done differently. 

If you feel down, know you are not alone; there is help. If you feel overwhelmed, please contact one of the many helplines to speak to someone.

…and if you are a family member concerned about how suicide impacts your policy. I have some information for you.

Who Am I & Why Do I Care?

My name is James Heidebrect. I am the founder of Policy Architects, a small boutique agency that serves the needs of Canadians from coast to coast.

As a Dad, Husband, and Son, I know how tangled up life can get. Periods of depression are not uncommon in today’s world, and thankfully, there is more dialogue about this than ever. 

Back in the 70s and 80s, this wasn’t the case. The stiff upper lip approach was more common than not, so people were forced to deal with their emotions in private.

I imagine many of us are dealing with anxiety and the blues. If you are sad or anxious, please get in touch with one of the many resources available. The time to conquer these feelings is today. Please don’t wait until they become too much to deal with. 

“Quinlan-Jacob said these uneasy feelings can come as a shock to people who weren’t dealing with mental-health issues before the pandemic. She said those who are noticing a disrupted routine, struggling to get out of bed or are experiencing intense emotions should reach out for help, both with personal connections and professionals.”

“Each level of support can offer something different. We need a community of people. We need our own village to help support us,” she said.”

‘Heartbreaking’: Suicide rates expected to rise as COVID-19 grinds on

Does Life Insurance Cover Suicide?

Note: The Two-Year Contestability Period & Suicide Clause

Life insurance is a business, meaning the goal is to make money. This is why you undergo an underwriting process for traditional term and permanent life insurance coverage. 

This includes a medical exam where a nurse takes your blood pressure, collects blood and urine samples, weighs and measures you, and asks a battery of health and lifestyle questions. This data is sent to an underwriter that gives you a rating:

• standard (average health) 
• preferred (good health) 
• preferred plus (excellent health) 
• Rated (medical issues) 
• Declined (serious medical issues) 

Life insurance companies insert a 2-year contestability period, allowing them to investigate a claim if you die before it ends. This protects the insurers from fraud.

So let’s say you know in your heart you are not well – you take out some coverage, lie to your agent about your concerns, and die six months later. Please know the insurer will go through your medical background with a fine tooth comb to see if you withheld anything. 

If they find something of note, your beneficiary will not inherit a dime. 

There is also typically a suicide clause.

Much like the contestability clause, if the policyholder commits suicide in the two-year window, the life insurance company will NOT cover the claim.  A suicide clause covers this specific situation.

Suicide After the 2-Year Contestability Period: Will the Death Benefits Be Paid?

The period after the 2-year contestability period expires is called the incontestability period. This protects policyholders from life insurance companies avoiding their responsibilities.

That said, it does not apply in cases of fraud. For example, let’s say a policyholder is bipolar and hides this from their agent during the application process. If this information comes out after a suicide, the insurer will not pay the claim. 

If you lie on your application, the insurer can deny the death benefit at any point.  

Other than that, the claim is paid out even if the policyholder commits suicide.

Mental Health Questions Are Asked During the Application Process

Life insurance companies know that mental health impacts people’s lives GREATLY. This is why they ask whether or not you have been treated for:

• Depression  
• Anxiety 
• Suicidal Ideation 
• Schizophrenia 
• ADHD 
• Bipolarity 
• Psychosis 

They want to know if you are being treated by a counselor or doctor, taking medication, or missing work. This information is used to determine your rating.

…OR possibly decline you if they feel your mental health is too big of an issue. It’s a way for the life insurance companies to protect themselves from potential suicide.

If you have mental health issues, give us a call at Policy Architects today. Some conditions are viewed less favorably than others, which means a no-medical life insurance policy may be your best bet.

Life Is Difficult If You Have Any Questions, Give Us a Call

Even the most positive people go through difficult days.

It’s important to address your feelings, even if they seem trivial. Reaching out to friends, family, or counselors can make all the difference.

Remember, with the proper treatment, hard times WILL pass. 

If you have any questions about how your mental health impacts your insurability, contact us today. We can review your options to find the RIGHT coverage for you and your family.