Yes, once the suicide clause period is over. That period is usually the first 2 years of the policy, and a few states set it at 1 year.
Most individual policies have a suicide clause. In Texas, companies usually will not pay the death benefit if the death is a suicide in the first two years.
If the company does not pay for that reason, it must give the premiums back to the beneficiary. So the family still gets that money.
After the clause period ends, the policy pays like it would for any other cause of death. Texas says that after two years, the company must pay no matter the cause.
State law sets the limit. Colorado law says suicide after the first policy year cannot be used to deny payment. Experian lists Colorado, Missouri, and North Dakota as one year states.
Group life through work often has no suicide clause, but extra coverage you buy through work might. If a claim is denied, you can appeal, and your state insurance department can help. If you or someone you love is struggling, you can call or text 988 to reach the Suicide and Crisis Lifeline.
More questions
Does the clock start over with a new policy?
Yes. A new policy starts a new two year period. If a policy lapses and is reinstated, a new contestable period starts too.
Does accidental death coverage pay for suicide?
Usually not. Experian says suicide is not treated as an accidental death.
Words to know
- Beneficiary
- The person you name to get the death benefit when you die. You can name more than one.
- Group life
- Life insurance offered by an employer or group to its members. You usually don't have to answer health questions, and coverage often ends when you leave.
- Premium
- The amount you pay an insurance company for your policy.
- Suicide clause
- In the first two years, companies usually will not pay the death benefit if the cause of death is suicide. The company returns the premiums instead.
