Will a Life Insurance Policy Pay Off if You Commit Suicide?

Will a Life Insurance Policy Pay Off After Suicide?

Most permanent and term life insurance contracts contain a suicide exclusion that prevents the insurer from paying a death benefit if the policyholder dies by suicide within a specified period, usually the first two years of the policy. After that period, the policy generally pays the benefit as long as it remains in force. The exclusion is designed to protect insurers from self‑inflicted claims, but it does not apply to accidental deaths or other covered causes.

How the Suicide Exclusion Works

The exclusion clause is a standard feature of life insurance contracts. If a policyholder dies by suicide during the exclusion period, the insurer may return the premiums paid and pay no death benefit. The policyholder's beneficiaries receive nothing. Once the exclusion period ends, the policy functions like any other life insurance contract; the death benefit is payable regardless of the cause of death, including suicide.

Exceptions and Special Cases

Some insurers offer policies that waive the suicide exclusion entirely, often at a higher premium. These policies may also have a "surrender value" that the policyholder can withdraw if they decide to terminate the policy early. Additionally, if a policyholder's suicide is ruled a suicide by a medical examiner, the insurer must follow the exclusion clause. If the death is classified as accidental or due to another cause, the benefit may still be payable.

Key Takeaways for Policyholders

• The suicide exclusion typically lasts two years from policy issuance. • After this period, the policy pays out as usual. • Some insurers provide suicide‑exclusion‑free policies for an additional cost. • Policyholders should review the terms in their contract and consider the implications for their beneficiaries.