Does My Insurance Cover Suicide?
This can depend on the state in which you live, and on the policy itself. In some states, such as Colorado, if you have had your life insurance policy for over a year, then, yes, your life insurance plan does cover suicide. Every plan is different and it is important to speak to your insurance representative to get all the details on what is covered and what is not; some insurance plans might cover suicide from the get-go. According to Colorado law, every insurance company doing business in the state of Colorado cannot use suicide as a defense against providing coverage beyond the first year of owning the policy. If you live in another state, the regulations on suicide coverage might be different.
Can I Make an Insurance Claim for Suicide?
Depending on where you live and what your insurance policy says, you may or may not be able to make an insurance claim for suicide. You need to speak with your individual insurance representative to get accurate information for your location and situation.
For example, in the state of Colorado, there is a statute (section 10-7-109, C.R.S.) that does not allow insurance companies to use suicide as a reason to deny life insurance payment to a beneficiary if the person who committed suicide had been a policyholder for more than one year. This is true for any life insurance company doing business in the state of Colorado. Therefore, if the policyholder committed suicide more than one year after getting life insurance, then, yes, you can make an insurance claim for a suicide death.
How Does a Life Insurance Claim Work?
When you make an insurance claim, you inform your insurance company that an event has occurred that makes you eligible for payment. In order to receive money from a life insurance claim, you have to be named the beneficiary of the policyholder. You will need to send the insurance company a certified copy of the policyholder’s death certificate to get the process started. It usually takes the insurance company about 30-60 days to send you your payment. If there is a reason for the insurance company to deny your claim, they will let you know along with a reason for the denial. A lawyer can help you dispute the denial of the claim if you feel the decision was incorrect.
Can a Life Insurance Company Deny My Claim Due to Suicide?
This depends on the language in your policy and the state in which you live. In many states, if the policyholder committed suicide after holding the policy for two years, the insurance company cannot deny the beneficiary’s claim due to suicide. In some states, such as Colorado, for example, this time limit is one year. The claim can be denied for other reasons, but suicide is not considered a valid reason for denial of a claim after one year of owning the policy.
What is a Death Benefit in a Life Insurance Policy?
When you purchase a life insurance policy, one aspect of the policy is providing for your beneficiary in the event of your death. That is known as the death benefit. Many insurance policies have a suicide exclusion, which allows them to deny the beneficiary’s claim if the policyholder commits suicide within a certain amount of time from the purchase of the policy. Though in some areas of the country, the suicide exclusion lasts for two years, in other areas, such as Colorado, the law is that the suicide exemption can only last for the first year of the policy. If the policyholder commits suicide any time after the first year, the insurance company cannot deny the beneficiary’s claim on the basis of suicide.
Does Group Life Insurance Cover Suicide Differently Than Individual Life Insurance Plans?
If you purchase life insurance through a group, such as through your corporate employer, you may not have to deal with a suicide exclusion period, as corporate policies generally wave the suicide exclusion clause. However, your employer may instill their own waiting period before your beneficiary can collect life insurance payment. This is an issue to look into when deciding where to purchase your life insurance, whether you are in Colorado or in any other state in the US.
Does Term Life Insurance Cover Suicide?
Yes, term life insurance does cover suicide once you pass the suicide exclusion period, which is different for each state. In Colorado, the suicide exclusion period is one year. There is no difference between whole life and term life insurance when it comes to covering suicide, and it is always a good idea to discuss your policy with your insurance broker to make sure you are covered in the areas you need.
Does Military Life Insurance Cover Suicide?
Military life insurance, otherwise known as Servicemember’s Group Life Insurance (SGLI), is a policy that comes from a private insurance company and is subsidised by the government for those serving in the military. There are several differences between SGLI policies and general private insurance policies, and one of those differences is that SGLI policies generally do not have an exclusion period for suicide. That means that military life insurance usually covers suicide from the moment the policy is signed.
Can Making Changes to Life Insurance Policy Affect Suicide Exclusion?
If you change your life insurance policy, the suicide exclusion clause period may restart. This means you may have to wait the designated amount of time in your state (two years in many states, one year in Colorado) before a suicide would be covered under your life insurance plan.
Will a Depression Diagnosis Affect My Life Insurance Policy?
Having a depression diagnosis can potentially affect your life insurance coverage, as you may be seen as having a greater risk for something like suicide. However, if you are properly treating your depression, the diagnosis should not affect your life insurance policy too much, if at all. The most important thing is to be honest, because if you do not disclose your diagnosis and are found out, you could face consequences with your insurance company.
