Life insurance and suicide

[electrosur]

What is the name of your state? Illinois

As a general rule do insurance companies pay out on a term life policy which has been in force for over 5 years when the cause of death is suicide?

Thanks for any answers.

JohnWhat is the name of your state?

 

[Dandy Don]

Not if there is a clause in the policy with a suicide exemption. Have you read the language of the policy to see if that is the case?

 

[electrosur]

Suicide Exclusion

There is a clause in the policy which reads as follows:

xxxxx will not pay a claim for any of the following benefits- Life protection etc etc.... in the event that the Life Assured has died as a result of their own actions (whether or not at the time of such action they were sane or insane) within 12 months of the policy start date or, if later, the date on which a particular benefit starts or the Sum Assured for a particular benefit is increased.

End of quote.

Is this a normal type of life insurance clause?

 

[cbg]

It is entirely normal for a life insurance policy to have a clause excluding coverage in the case of a suicide. The length of time that clause covers varies with the company/policy.

 

[Betty]

Companies vary (as indicated by cbg) - the co. I worked for had a 2 yr. contestable clause for suicide - apparently the pol. you are asking about has a 1 yr. one. The contestable clause (contestable period) starts on the effective date of the coverage/benefit. I assume you were just asking & don't have a co. that isn't paying out.