A Look At Whether Life Insurance Covers Suicide
After a certain age it is vital to take a life insurance policy because so many family members will be depending on you for their financial needs. In case of sudden passing away, who will be there to protect and provide for them?
They have to manage so many money obligations right away. It is in this context that coverage from life insurance come to be of help. It pays out to meet those financial needs that cannot be coped up suddenly when the family bread winner is no more.
Does Life Insurance Pay If The Policy Holder Has Committed Suicide?
Life insurance pays out under the critical circumstance of the policy owner no longer being present to provide for loved ones, who are already having a very difficult time emotionally in dealing with the heavy loss.
Money from the policy can be used to settle medical bills, debts, children’s education fees and much more. However, payment can be availed only if the policy holder dies due to a disease or an accident. Does suicide come into the picture here? No. No payment is given to loved ones if the policy holder passes away because he or she committed suicide.
However, there are exceptions to this rule as can be seen when insurance companies pays out when the policy holder dies due to drug overdose.
Life insurance for depression Sufferers
In this context, though it was due to he or she taking too much of drugs that the situation happened, still it was not intentional. The insurance company considers such a case as that of accidental suicide and so makes a payout to the policy holder.
In the event of the insurance company offering suicide rider, the life insurance company will pay out in the event that the policy holder passes away due to suicide in the first two years of purchasing the policy. Why?
This rider is provided with the intention that the policy holder will not think or try to commit suicide so that beneficiaries get paid. Benefits of this rider come into effect only if the policy holder passes away after two years of purchasing it and not before. If passing away of the policy holder happens due to self inflicted harm, within two years of policy purchase, no payout happens.
How Do Life Insurance Policies deal with Suicides, Anxiety and Depressions?
What about physician assisted suicides? In such situations, the life insurance company does not make a payout if the policy holder passes away within two years of making policy purchase. However, if the physician assisted suicide was availed after the two year period, the policy will certainly make a payout.
It is to be noted that self-inflicted harm to end one’s life is very grievous and loved ones will certainly feel more burdened by the thought of having to be provided by a policy that pays out for such a situation.
However, it is only under certain situations that such payment is made which should be noted by every individual when making life insurance policy purchase.