Suicide and life insurance

[JD698]

What is the name of your state? New York

Does New York have any rules regarding paying life insurance benefits for a suicide? I recall reading that sucides were not payable because of public policy issues.

 

[CIAA]

JD698,

I believe New York, like most states, pays for suicide occuring after the policy has been in force for more than 2 years. One theory is that if someone waits 2 years then they, in all probability, did not purchase the policy with the actual intent of committing suicide.

 

[Dandy Don]

It is not New York law that would apply but primarily the company policy of the life insurance company that would determine whether or not payment would be made. Some companies allow it under certain conditions, but most companies deny payment if suicide occurs--you need to look at the fine print on the policy or contact the insurance company if you don't know for sure.

 

[CIAA]

Policies issued to residence of a state must comply with that states' insurance code and regulations related to "required standard policy provisions." The language to be used in these policies must be no more restrictive that as stated in the state regulations or insurance code. Most companies, for obvious reasons, choose the lmost restrictive language allowed.