Taking out a life insurance policy is something many people do once they reach adulthood, especially once they get married and have children of their own to support. The purpose of life insurance is to make sure a person's loved ones (such as their spouse, children, and other immediate family) aren't left unable to pay their bills in the event that he or she were to pass away.
Still, all life insurance benefit payouts are dependent on the beneficiaries filing claims and those claims being subsequently accepted by the life insurance company. Unfortunately, in instances of suicide, getting a claim approved isn't always easy. In fact, there are many ways in which suicide and suicide risk can affect one's coverage.
Suicide Risk and Policy Premiums
For starters, many insurance companies will ask questions in the application process that will be used to determine an applicant's risk for suicide. Furthermore, when it comes time to underwrite a life insurance policy, there is a good chance that credit reports and even criminal background checks will be pulled. Certain factors, such as bankruptcy and even criminal convictions, could be considered risk factors for suicide.
As a result, those with a higher risk for suicide will end up paying more in life insurance premiums, and some could even have a hard time finding affordable coverage.
Suicide and Claim Denials
Of course, this isn't the only way in which suicide risk could affect a person's life insurance policy. In the event that an insured person actually does pass away as a result of suicide and/or self-inflicted injuries, then it is likely that the beneficiary's life insurance claim could be denied down the road. This is where it is extremely important to consult with an experienced life insurance lawyer.
Most insurance companies these days will not pay out in the event of a suicide. Instead, the life insurance company will deny due to suicide exclusion, and no money will be paid out. This leaves beneficiaries not only grieving over the loss of a loved one to suicide, but grappling with difficult questions over how they are going to pay for the funeral and future living expenses for themselves.
Should You Speak with an Experienced Life Insurance Lawyer?
If you have recently had a beneficiary claim denied because of suicide and/or self-inflicted injury as a cause of death, you shouldn't accept that ruling from the insurance company. Instead, you should retain a highly-experienced life insurance lawyer to resolve it. We have resolved hundreds of denied life insurance claims that were denied due to suicide and/or self-inflicted injury. We submit a 100-200 legal brief to the insurance company, and we have been successful in these claims one hundred percent of the time.
The most important thing to remember, however, is that retaining a life insurance attorney with at least 15 years of experience handling suicide denials is key.