Does Life Insurance Cover Suicidal Death? Life Insurance Lawyers Explain When Policies Pay Out and When They Don’t
Suicide is a devastating tragedy that leaves families struggling emotionally and financially. Many beneficiaries rely on life insurance payments to cover funeral costs, household bills, and long-term financial security. However, when suicidal death is involved, life insurance companies often delay or deny the payout—sometimes wrongfully. With suicide rates rising in the United States, insurers take extra precautions to prevent fraud and financial motivation, which can complicate claims for grieving families.
In this guide, our life insurance lawyers explain when life insurance covers suicide, how suicide clauses work, what the contestability period means, when group policies pay, how physician-assisted suicide is treated, how overdose-related deaths are evaluated, and what to do if your life insurance claim is denied due to suicide.
If your claim has been denied or delayed, call (888) 510-2212 for a free consultation.
When Does Life Insurance Cover Suicide?
Generally, life insurance will pay out for suicidal death if the policy has been in effect for more than two years. This two-year window is known as the suicide clause, and it is included in almost all individual life insurance policies issued in the United States.
If the insured dies by suicide after the two-year period, the insurer must pay the full death benefit unless another exclusion applies.
If the suicide occurs within the first two years, the insurer may:
Deny the death benefit
Refund only the premiums paid
Investigate the cause of death and application for misrepresentation
This is why it is critically important to understand how the suicide clause interacts with the contestability period.
What Is a Life Insurance Suicide Clause?
A suicide clause—also called a suicide exclusion—is a contractual two-year period during which a life insurance company will not pay the death benefit if the insured dies by suicide.
This clause exists to prevent individuals from purchasing a policy with the intent to take their own life shortly afterward to create financial support for loved ones.
Once the two-year suicide clause expires:
The death benefit becomes payable, even if the death is ruled suicide
The insurer cannot void the policy based on the cause of death
Only other exclusions (if any) may impact payout
Most beneficiaries understandably find this clause confusing, especially when the death occurs just months before or after the exclusion period ends.
Understanding the Contestability Period in Suicide Cases
The contestability period is another two-year window following the policy’s issue date. During this period, insurers may:
Investigate the cause of death
Review the application for misrepresentation
Request medical records
Delay payout
Deny the claim for reasons unrelated to suicide
The suicide clause and contestability period often overlap, but they are not the same.
Key difference:
The suicide clause prevents payout only if death is suicide.
The contestability clause allows insurers to deny payout for many reasons, including misrepresentation, even when death was accidental or natural.
Policy changes restart both periods
If the insured:
Increased coverage
Converted term to whole life
Reapplied after a lapse
…both the contestability period and the suicide clause may restart from the date of the change.
This is one of the most common reasons insurers deny suicidal death claims.
What Is the Incontestability Clause?
Once the contestability period ends, the incontestability clause goes into effect. This clause protects policyholders by preventing insurers from canceling or voiding a policy based on application misstatements—unless the insurer can prove:
Intentional fraud, or
Material misrepresentation that influenced underwriting
Importantly, once incontestability begins, the insurer must pay—even in suicide cases—unless it has clear evidence of fraud.
Does Group Life Insurance Pay for Suicide?
Most group life insurance policies do not include a suicide clause. This means:
If the insured committed suicide shortly after enrollment in a fully employer-paid plan, beneficiaries are typically entitled to the full payout.
Group supplemental or voluntary life insurance may have a suicide clause—usually two years.
Because group policies are often governed by ERISA, disputes over suicidal death can require specialized legal expertise. Beneficiaries should contact the employer’s HR department and a life insurance lawyer to understand the terms of the specific plan.
How Life Insurance Payout Works for Suicidal Death
Payout varies based on the type of policy:
✔ Term Life Insurance
Suicide after the exclusion period → Full death benefit paid
Suicide during the exclusion period → Refund of paid premiums only
✔ Whole Life Insurance
Suicide during the exclusion period → Beneficiaries may receive the cash value of the policy, but not the full death benefit
After the clause expires → Full benefit plus accumulated cash value is paid
Military Life Insurance (SGLI and VGLI) and Suicide
Service members enrolled in SGLI or VGLI receive coverage even if death is ruled suicide. These policies:
Do not include a suicide clause
Do not include a contestability period
Pay the full death benefit regardless of timing
The military designed these policies to ensure families are financially protected, even in tragic circumstances.
Does Physician-Assisted Suicide Void Life Insurance?
Physician-assisted suicide—also called Death with Dignity or Right-to-Die—is legal in the following U.S. jurisdictions:
California
Colorado
District of Columbia
Hawaii
Maine
New Jersey
New Mexico
Oregon
Vermont
Washington
In these states, life insurance will pay the death benefit even during the suicide clause period because the death is considered medically authorized and lawful.
In states without Death with Dignity laws, assisted suicide is treated like any other suicide for insurance purposes.
Life Insurance and Drug Overdose or Alcohol-Related Deaths
Overdose deaths are among the most disputed claim types involving suicide.
If overdose occurs during the suicide clause or contestability period:
The insurer may deny the claim if it can prove the overdose was intentional
If the medications were prescribed and properly taken, it may be treated as accidental
Illegal drug overdoses often result in denials due to “illegal activity” exclusions
After the exclusion period:
Benefits may still be denied if the insurer finds evidence of intentional self-harm
If mental illness was undisclosed, the insurer may argue misrepresentation
Alcohol-related deaths
Similar rules apply:
If the insurer can prove intentional self-harm or undisclosed alcohol treatment, it may deny payment
Otherwise, death may be classified as accidental or natural, depending on circumstances
Does Depression Affect Life Insurance Payout After Suicide?
Having a diagnosis of anxiety, depression, or other mental health conditions does not prevent life insurance payout.
As long as the suicide occurs after the suicide clause and contestability period, the insurer must pay—even if premiums were increased due to mental health history.
The only exception is when the insurer proves fraud, such as undisclosed hospitalization or treatment.
What to Do if Your Life Insurance Claim Is Denied Due to Suicide
If the insurer denies your claim, it may argue:
The suicide occurred during the exclusion period
There was misrepresentation on the application
The cause of death was unclear
The overdose was intentional
Death occurred during a lapse or coverage change
Death was not “accidental” during contestability
Life insurance companies typically investigate suicidal deaths by reviewing:
Death certificates
Autopsy reports
Police reports
Toxicology results
Medical records
Mental health treatment records
These investigations can take months, leaving families without financial support.
If your claim was denied:
Do not accept the denial as final
Request the claim file
Have the denial letter reviewed by a life insurance lawyer
Appeal the decision within the deadline
Gather medical and legal documentation to refute the insurer’s findings
Our law firm has successfully overturned suicidal death denials in:
Misclassified suicides (accidents ruled incorrectly)
Firearm deaths with unclear cause
Medication overdoses
Intoxication disputes
ERISA-governed group plan disputes
Beneficiary challenges linked to mental health history
We work with medical experts, forensic toxicologists, and investigators to build a strong appeal.
No Fee Unless We Win
Our life insurance attorneys only collect legal fees if we recover the death benefit for you.
You pay nothing upfront.
You owe nothing unless we win.
Call (888) 510-2212 for a free case evaluation if your suicidal death claim was denied or delayed. We can help.
