Life insurance - does it cover suicide?

There is a common belief that Life Insurance Companies do not settle claims as a result of suicide, but this is not necessarily so.

Suicide has and always will be a difficult claim to make under a Life Insurance policy for several reasons, the most obvious of which is the financial. What life insurance company hoping to remain in business would freely offer suicide cover?

In the past, when church and state functioned more closely, and before we had a better understanding of mental health issues, suicide was precluded from life insurance policies and suicides were buried in unconsecrated ground, outside of the cemetery boundaries.

Fortunately, times have changed and society has a better understanding of what drives people to suicide, and as church and state have opened their minds, so too have the life insurance companies. It is now possible to obtain life insurance policies which will also pay a suicide claim after a suitable waiting period.

If you’re looking for a Life Insurance policy which will also cover suicide, make sure you read the product disclosure statement and are clear about the waiting period, which is usually 13 months. Compare life insurance quotes today!

Exclusive Offer! Call xLife on 1300 135 205 today and
save up to 20% on your first year’s life insurance premium.

December 2009