Tuesday, January 12, 2010

Life Insurance and Suicide?

Does life insurance pay the spouse if the other commits suicide years after they brought the policy?

If a couple brought a life insurance policy years ago, and one of them commits suicide today, will the life insurance company pay the surviving spouse.

Does life insurance pay the spouse if the other commits suicide years after they brought the policy?

If it is a standard life insurance policy (not an accident life insurance policy) and the spouse is the named beneficiary, then yes the insurance would pay the spouse the proceeds from the life insurance policy.

Suicide is only an exclusion for the first two years (one year in some states) under a standard life insurance policy (universal, term or whole life). After two years standard life policies become incontestable, and would usually pay out the death benefit of the policy.

Unless there's a suicide exclusion on the policy, once the contestable period is over, it will pay the beneficiary.

You can learn more about life insurance by reviewing these term life insurance faqs.

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