Life insurance does cover suicide, but there’s a catch—timing matters. Most policies include a suicide clause that denies benefits if death occurs within one to two years of buying the policy. North Dakota keeps it to one year. After that exclusion period ends, suicide is treated like any other covered death, and beneficiaries get paid. Group life insurance through employers often skips these exclusions entirely. The details below explain how the system actually works and what beneficiaries should know.
Design Highlights
- Most life insurance policies include a suicide clause that denies benefits if death occurs within one to two years of coverage.
- After the exclusion period ends, suicide deaths are typically covered and benefits are paid like any other death claim.
- Group life insurance through employers often lacks suicide exclusions, meaning death causes generally don’t affect payouts.
- State laws dictate exclusion periods; North Dakota has one year while most states require two years of contestability.
- Denied claims during exclusion periods usually result in premium refunds only, though legal support may help dispute wrongful denials.
Life insurance and suicide—not exactly cocktail party conversation, but here’s the deal. Most policies include what’s called a suicide clause, and it matters a lot when the death happens. If someone dies by suicide within the first one to two years of getting a policy, the insurer typically denies the death benefit. That’s the exclusion period. The clock starts ticking the day coverage begins.
Suicide within the first one to two years of a life insurance policy? The insurer denies the death benefit during that exclusion period.
Two years is the standard contestability period in most states. North Dakota does things differently with just one year. During this window, insurers can investigate claims and deny payouts based on misstatements or omissions on the application. Find an undisclosed mental health condition? Claim denied. It’s harsh, but that’s how insurance companies protect themselves from adverse selection and fraud.
Here’s where it gets slightly less grim. After the suicide exclusion period ends, death by suicide is generally covered. Benefits get paid out like any other death claim, assuming no policy violations exist. The incontestability clause kicks in after that initial contest period, giving beneficiaries protection and claim certainty. Fraud or intentional misrepresentation can still cause problems, but those are different beasts entirely.
Switching policies resets everything. New policy, new suicide exclusion period, even with the same insurer. That’s something people don’t always realize until it’s too late.
Group life insurance through employers often works differently. Many group policies don’t include suicide exclusions at all. Death is death, and the payout happens regardless of cause. Supplemental coverage bought through work, though? That usually comes with the standard suicide clause and contestability period. Military policies sometimes skip the exclusions too. Different underwriting standards, different risk pooling.
State laws control how long these exclusions last and what insurers can do during contestability periods. ERISA provides some protections against unfair denials in group plans. Assisted suicide gets murky—policies don’t explicitly exclude it usually, but insurers will investigate those deaths closely.
If the insurer denies a claim during the exclusion period, they generally refund the premiums paid. Not the death benefit, just what went in. It’s something, but not much comfort to grieving beneficiaries expecting a full payout. The specified sum paid to beneficiaries is designed to provide financial support for funeral expenses, outstanding debts, and ongoing living costs after the insured’s death. People with a history of depression or anxiety can still obtain life insurance, especially if their conditions are well-managed and properly disclosed during the application process.
Courts sometimes consider underlying medical or mental health conditions as mitigating factors. Sometimes they honor payouts instead of letting insurers off the hook. It depends on the circumstances, the state, and frankly, the judge’s interpretation of policy language. Experienced life insurance lawyers can help beneficiaries navigate wrongful claim denials and bad-faith insurance practices when disputes arise.
Frequently Asked Questions
Can Beneficiaries Still Receive a Payout if Suicide Occurs During Contestability Period?
No. If suicide happens during the first one to two years, beneficiaries won’t get the death benefit. Period.
The insurance company just refunds the premiums paid—nothing more. Doesn’t matter if the policy application was squeaky clean or riddled with lies. The suicide clause kicks in regardless.
Some states limit it to one year instead of two, but the result’s the same. No payout during that initial window.
After two years though? Different story entirely.
Do All Life Insurance Policies Have the Same Suicide Clause Waiting Period?
No, they don’t. Most policies stick to either 12 or 24 months, but there’s variation depending on the insurer and policy type.
Term life, whole life, ULIPs—they all typically fall somewhere in that one-to-two-year range. Some rare outliers exist with shorter or longer periods, but good luck finding them.
Group policies might play by different rules entirely.
And here’s the kicker: if you reinstate or replace your policy, that waiting period starts over from scratch.
Will Accidental Death Insurance Pay Out for Intentional Self-Harm Deaths?
No. Accidental death insurance won’t pay out for intentional self-harm deaths. Period.
These policies only cover unintended, unexpected accidents—not deliberate acts.
Suicide and self-inflicted injuries are explicitly excluded because, well, they’re intentional.
Death certificates listing suicide as the cause? Claim denied.
It’s pretty straightforward.
AD&D insurers draw a hard line between accidents and intentional acts, and intentional self-harm falls squarely on the wrong side of that line every single time.
Are There Mental Health Resources Provided by Life Insurance Companies for Policyholders?
Yes, some life insurance companies provide mental health resources for policyholders.
Many offer Employee Assistance Programs with confidential counseling. Others include coverage for hospital stays in mental health facilities, online mental health tools, coaching apps, and referrals to specialists.
Group life insurance plans sometimes bundle these benefits together. It’s not universal across all insurers, but the trend is growing.
These resources exist alongside regular policy benefits, not as replacements for actual mental health treatment through medical insurance.
Does a Suicide Ruling Affect Other Insurance Policies Held by the Deceased?
Generally, no. A suicide ruling doesn’t mess with most other insurance policies the deceased held.
Health insurance claims get processed normally—they’re not retroactively voided. Homeowners, renters, and auto insurance keep chugging along like nothing happened. Business policies? Unaffected.
The big exceptions are disability and accidental death insurance, which typically exclude self-inflicted injuries anyway.
But standard property and liability coverage doesn’t care about cause of death. Those policies operate independently from life insurance’s suicide clauses.
