Life insurance, in general, is an agreement between a policyholder and the insurer. The life insurance company requires the insured to make several payments in a year with the promise that should the insured pass away, his or her family would receive a sum of money. In case you die, the company should pay a particular amount of money to the family of the loved ones.
If the cause of death is natural, getting a payout can be easy. Suicides, on the other hand, could complicate the situation. However, does that mean you cannot get the money from the insurance company? And “does life insurance pay for suicidal death in the US?”
Today, you will learn the truths and the relationship between these two, insurance and suicide.
The relation between life insurance and suicide
CDC, in the 2016 findings, found out that about 45, 000 people died because of suicidal death. Not many of the survivors got their payouts, maybe because they did not know that there could be a possibility of one.
The truth is, not many people know this fact. You can get a payout as long as you consider various factors.
What are these factors?
Fundamentally, two things can block you from getting the money the deceased left. They are:
– Incontestable clause
The clause allows the company to carry out thorough investigations on the cause of suicide. If they find out that there is fraud, they might refuse to pay the amount. On the other hand, they will pay if they find that the general cause of death was accidental.
On the other hand, the contestable period is between two years between the start of the policy to the death. If this time lapses, be sure that the life insurance company will not be able to contest. Therefore, there will be an immediate payout.
– The life insurance policy
Many insurers take utmost precautions when someone applies for this type of insurance. The customer will have to produce health documents (both physical and mental), their age, medical history, nicotine use, and gender. All these details are essential to the insurer when coming up with the right premiums for the policyholder.
Some insurance firms will include policies that will exclude them from paying out any claims in the case of suicide.
These policies are put to stop people who would choose to self-injure themselves intentionally so that their family can benefit from the claim.
Will the insurer consider a payout in physician-assisted suicide?
Chronic illness can overwhelm a patient. Instead of letting the disease kill you, some people will often turn to physician-assisted suicide. In such a situation, the insurer will consider the two factors mentioned above.
Some states have laws that protect the right to assisted suicide. Hence, it will be easy to claim in this situation.
Summing it up
Insurers can refuse to pay out, sometimes. What can you do in such an instance?
Many people go unattended because they could not get the right help. A lawyer can help you know whether it will be possible to get the payout or not.
The law firm you contact, because they know how expensive the lawsuit can be, they will only demand payment after you win your case.