Does Life Insurance Pay For Suicidal Death in Australia?
That pesky topic life insurance – always in the back of our minds. Life insurance policies are very important to protect your family should you pass away or can no longer work. Many people think it’s just for those that are dying or ill, but it’s not. It’s actually for those very much alive, and who will be alive if you pass. A life insurance policy is important to consider, especially if you are the breadwinner of the family. However, there are common life insurance exclusions, and one of the common questions is does life insurance cover suicide?
Here we will explore life insurance policies, and whether life insurance covers suicide. Of course, you can always find the best life insurance policy for your needs, and many life insurance providers include death caused by suicide. Read on to find out more, then compare your life insurance policies through Billy Explores and find the best life insurance policy for your needs!
What is life insurance?
Before we find out does life insurance cover suicide, we need to define what life insurance is.
Life Insurance is also called ‘death cover’ or ‘death life insurance cover’ (yes – this is morbid!). It is meant so replace any income you would have earned if you die, or there is another policy which covers if you can no longer work. You can purchase a life insurance policy which will pay an agreed lump-sum, providing financial protection for your family.
Your individual circumstance will impact the amount of life insurance you purchase, or if you have multiple life insurance policies. If you already own your home, you may need less than someone who still has a mortgage. Likewise if your family has considerable debts or loans, you may want your life insurance policy to cover those costs in full. A life insurance payout can give your family the chance to grieve without worrying about how they’re going to pay the bills. Find out more here and here.
Does life insurance cover suicide?
Yes, most life insurance policies generally do cover suicide and will do an insurance death payout, but only after a specific exclusion period. Generally, this period depends on your Life Insurance Policy provider and the specifics of your life insurance policy. Usually, your insurance death payout and claim will be declined if you were to deliberately kill yourself within the exclusion period after your policy has started or been re-instated. Of course, there are many different life insurance policy providers so it’s always best to compare life insurance policies through Billy Explores!
Applying for unnatural death life insurance cover after a suicide attempt
Life insurance policy providers will see any attempted suicide as a very serious risk factor in providing you with a new life insurance policy. They might ask you to provide the following information while assessing your risk:
- What mental health support did you have?
- What contributing factors led you to contemplate taking your own life, for example, did you have a terminal illness, or depression?
- How long ago have you attempted suicide?
- If due to mental health problems, what was the specific date of diagnosis.
- Whether or not you have had ongoing mental health support.
- Any medications you’ve been on in the past or are currently taking.
- Whether there is a family history of mental health problems or suicide.
In this instance, your life insurance policy may not cover suicide. It’s always best to check your life insurance policy for this specific common life insurance exclusion. If you can’t find a life insurance policy provider for your needs in this specific occasions, compare life insurance policies through Billy Explores, and save time and money to hopefully find a life insurance policy provider that will have your life insurance cover suicide.
Common Life Insurance Exclusions
You will quite often hear the term ‘common life insurance exclusions’. This means your life insurance policy provider will not do any insurance death payouts if the claim had been impacted by it. Billy Explores recommends really reading through and understanding your Life Insurance policy PDS and chatting with your Life Insurance policy provider if you have any questions.
Some common life insurance exclusions include:
You may not receive an insurance death payout, if you commit suicide within the exclusion period shown in your PDS.
- Not disclosing medical information
When you did your initial application, if you didn’t fully disclose any medical information, this includes any history of mental illness and drug or alcohol dependencies, then you may not receive an insurance death payout. Meaning, if you had a history of depression, for example, and you did not tell your insurer, they have the right to deny a claim or pay a lesser amount whether you die of suicide or any other cause. Be aware that an insurance company will generally do a full investigation of your Medicare records when you die.So, answer all questions truthfully and accurately and be completely honest when completing doing your application.
- Taking part in illegal activities
Other common exclusions include participating in illegal activities and drug or alcohol abuse, which can lead to an increased risk of death by suicide given outcomes.
Compare Life Insurance Policies
So hopefully you know more about the question: Does Life Insurance Cover suicide? Why not now compare life insurance polices and find the best life insurance policy for your and your family’s needs through Billy Explores. Billy Explores has a great range of life insurance policy providers who can all help with death life insurance cover. Compare life insurance policies today!