Does life insurance cover suicide?

Will life insurance pay out after suicide?

In Australia, life cover will typically not pay out for a suicide that happens within 13 months of the start of the policy. This is to prevent people taking out life insurance for the sole purpose of committing self-harm, but it's also put in place to protect people at risk.

After the exclusion period, life insurance funds will pay out in a normal fashion, even if the life covered dies by their own hand.

Can you get life insurance if you've attempted suicide?

Yes, if you've attempted suicide in the past, it's still possible to get life insurance. However, your current and prior mental state can complicate things.

Like any pre-existing condition, an insurer will ask you a series of questions about when you first experienced symptoms and if you still experience symptoms. This is so it can try to determine how much of a risk it is to insure you and what to charge you for a policy.

In some cases, insurers may apply exclusions to pre-existing medical conditions. This can still be determined after the fact, if the insurer believes you lied on your application, it might not cover mental health-related death.

Applying for life insurance after a suicide attempt

>When you apply for life insurance, you're required to disclose details about your medical history – this helps the insurer determine how much it'll charge you for a policy. It will likely ask you:

• When you first experienced symptoms and if you still do
• Whether the cause of the problem has been identified or diagnosed by a qualified health professional
• If you have been on medication or are currently taking medication
• If you have a family history of mental health issues
• About your general lifestyle, including if you smoke

Submitting a claim if your partner has committed suicide

If you've lost a loved one to suicide, you can submit a life insurance claim, so long as they held a policy in their name and meet the following criteria:

They held the policy for longer than the exclusion period – this is usually 13 months – and the policy did not exclude death by suicide (this will be outlined in the product disclosure statement).

They fully disclosed their medical history and answered all personal information honestly at the time of application. If they were dishonest, you risk having your claim rejected.

You are their nominated beneficiary (the person they selected to receive the life insurance payout) – whoever is nominated will have to submit the claim.

Does life insurance cover a drug overdose?

Life insurance may cover a drug overdose but this depends on the insurer's specific terms. Generally, you'll be covered only if you did not have a drug habit before or when you applied for the policy, and if the drug overdose was due to a prescribed drug. You won't be covered if you die during the exclusion period.

Additionally, you'll generally find many life insurers have specific exclusions related to drugs. For example, some won't pay out for claims which are caused or exacerbated by alcohol abuse or the use of drugs other than as prescribed by a medical practitioner.

Total and permanent disability cover usually also excludes any conditions directly or indirectly caused by drug use such as liver failure, heart attacks or Parkinson's disease.

When life insurance might not pay out

Before you take out life insurance, read the general exclusions section of the product disclosure statement (PDS). Here are some examples of when you might not be covered:

• If suicide or intentional self-injury is listed as an exclusion
• If you commit suicide within the exclusion period (usually 13 months)
• If you are not truthful about your health during the application
• If you take part in illegal activities, for example drug abuse
• If you die during a dangerous activity (insurers often list dangerous activities like bungee jumping as an exclusion)

Where can I get mental health support?

If you need help, there are a number of resources available including:

FAQs about how life insurance can cover suicide

• Why is there a 13-month exclusion period?

  The 13-month exclusion period is widely used across the life insurance market. It's used to discourage people from taking out life insurance and then dying from suicide soon after for the purposes of receiving a payout for their loved ones.

• When does life insurance not cover suicide?

  Life insurance won't cover death as a result of suicide if it occurs within the 13-month exclusion period. However, you also won't be covered for any intentional self-injury or attempted suicide with: total and permanent disablement insurance, trauma cover or income protection.

  In other words, insurance unfortunately doesn't help out if you intentionally self-harm. However, income protection can cover you for a short period of time if you need to take some time off work due to poor mental health.

To make sure you get accurate and helpful information, this guide has been edited by Jason Loewenthal as part of our fact-checking process.

Written by

Gary Ross Hunter

Editor, Insurance

Gary Ross Hunter was an editor at Finder, specialising in insurance. He’s been writing about life, travel, home, car, pet and health insurance for over 6 years and regularly appears as an insurance expert in publications including The Sydney Morning Herald, The Guardian and news.com.au. Gary holds a Kaplan Tier 2 General Advice General Insurance certification which meets the requirements of ASIC Regulatory Guide 146 (RG146). See full bio

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