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Life insurance - does it cover suicide?
Life insurance and 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. Disclaimer
The information provided
is general in nature and does not take into account
your particular insurance needs, financial situation
or investment objectives. We recommend that you speak to
an xlife risk advisor before you make any decision regarding life insurance. |
