Life Insurance and Suicide

Life Insurance and Suicide

There’s a famous scene in the holiday classic “It’s a Wonderful Life”, where George Bailey finds himself begging greedy old Mr. Potter for money after finding himself in a tough spot. Mr. Potter asks Bailey if he has anything of value to secure a loan. George mentions an old life insurance policy, to which Mr. Potter responds, “George, you’re worth more dead than alive.”

Throughout the bulk of the movie, George learns lessons of his true value and the film has a heartwarming ending. This is not always the case in real life.

According to the American Foundation for Suicide Prevention, suicide is the 10th leading cause of death of Americans and in 2018, it resulted in the death of over 48,000 people. Almost 1.5 million people attempt suicide annually and it costs the country $69 billion in self-injury-related costs.

It can be a difficult topic to discuss. It can cause many to wonder what is the relationship between suicide and life insurance and does a life insurance policy pay benefits when a suicide take place?

Life insurance policies generally have a suicide clause which deals with the subject. The clause is in place to discourage people from hurting themselves to provide potential gain for their families. This provision will prevent payments for at least a year after issuance if a suicide takes place. In many instances, there is a two-year clause.

Should a suicide take place within this incontestability period, many companies limit their obligation to returning any premiums that were paid on the policy. The death benefit would not be paid.

The death of any loved one can be devastating. It can be particularly so when it involves a suicide. Life insurance, however, was never intended to serve as a reason or justification for taking one’s life. These provisions are in place to stem that incentive.

If you are aware of a situation that could possibly lead to a suicide, contact the National Suicide Prevention Lifeline at 1-800-273-8255.

If you have questions about life insurance and its benefits and limitations, you are encouraged to contact us. Our independent agents are knowledgeable and professional and will be pleased to answer your questions. Should you desire a quote, they can check with multiple companies to find your best value. Connect with us today.


Do you have questions about your insurance? Find an insurance agent near you with our Agent Finder

Buzz Your
Insurance Agent

Search for a local agent with our agent finder map.

Agent Finder

Search All Blogs

Search
Generic filters
Exact matches only
Search in title
Search in content
Search in excerpt

Buzz Your
Insurance Agent

Search for a local agent with our agent finder map.

Agent Finder

Want to learn more about
our blog writer?

Read more about KayLynn's background.

Search All Blogs

Search
Generic filters
Exact matches only
Search in title
Search in content
Search in excerpt

Life Insurance: Why Waiting Limits Your Options

Waiting to purchase life insurance just may limit your options. Here’s how to maximize your choices when buying life insurance.

Five Cents a Week for Life Insurance? Wait…There’s more!

There Was a Life Insurance Version of the Milk Man and Home Doctor Visit

The Difference Between Term Life Insurance and Permanent Life Insurance Explained

This is a Great Way to Start with Life Insurance

A Closer Look at the Life Insurance Waiver of Premium Benefit

Many Life Insurance Policies Contain a Powerful, Hidden Benefit

Can I Buy Life Insurance if I’m Dying?

Insurance Can’t be Secured Following a Calamity. The Time to Act is Now

The Two Biggest Factors That Make Life Insurance Rates Increase

Age and Health Are the Biggest Contributors to Increasing Life Insurance Costs

Life Insurance: Buy What You Can Afford

Buying a Large Amount of Life Insurance May Be Pointless If You Can’t Afford It

Why an Independent Agent is Your Best Option for Life Insurance Quotes

Choice is Good. It’s Just One Reason an Independent Insurance Agent May Be Best for You.

Getting Married? Now’s a Good Time to Consider Life Insurance

Marriage is one of those benchmark times when you should have your life insurance reviewed. We can help.

Why Life Insurance Should Be a Fundamental Part of Your Financial Plan

How Are You Protecting Your Money Machine?

Leave a Comment