Taking out a life insurance policy is a crucial step for many adults, especially those who are married or have children to support. Life insurance provides financial security for loved ones, ensuring that they can cover living expenses, funeral costs, and other bills in the event of a policyholder’s death. However, even though the intent behind life insurance is to provide peace of mind, not all claims are straightforward, especially in cases of suicide or self-inflicted injuries.
In this blog, we’ll explore how suicide risk affects life insurance policies, and what to do if your life insurance claim is denied due to suicide.
Understanding Suicide Risk and Life Insurance Premiums
When applying for life insurance, insurance companies assess several factors to determine the applicant’s risk level. Suicide risk is one of the critical factors that could impact both the premiums you pay and whether your claim is accepted after death.
Insurance companies often ask specific questions in the application process about your health, family history, and lifestyle that may indicate a higher risk of suicide. Additionally, insurers may pull credit reports and criminal background checks during the underwriting process. Issues such as bankruptcy, mental health history, and criminal convictions might be flagged as risk factors for suicide.
As a result, individuals who are deemed higher risk for suicide may face higher premiums or, in some cases, difficulty obtaining affordable coverage. It's essential to be honest when applying for life insurance to ensure that your policy is valid and won’t face complications if you need to file a claim.
Suicide and Life Insurance Claim Denials
While life insurance policies can offer crucial financial support, many policies include suicide exclusions. In the unfortunate event that the policyholder passes away due to suicide or self-inflicted injury, the beneficiary's claim may be denied.
Most life insurance companies have a standard suicide exclusion clause that typically prevents payouts if the death is determined to be a suicide. However, each insurance policy is different, and the terms can vary. Many policies have a contestability period (usually two years) during which the insurer has the right to investigate the circumstances surrounding the death. If the insured passes away by suicide within this period, the insurer might refuse to pay out the claim based on the suicide exclusion clause.
This situation can be devastating for the surviving loved ones, who are already grieving the loss of their loved one. Beyond the emotional toll, they may now face additional financial struggles, including the inability to cover funeral costs and ongoing living expenses without the expected death benefit.
What to Do If Your Life Insurance Claim is Denied Due to Suicide
If you’ve had a life insurance claim denied due to suicide, it’s essential to not accept the decision immediately. In many cases, insurance companies can make errors in their interpretation of the policy or the circumstances surrounding the death. An experienced life insurance attorney can help you navigate the appeals process and provide crucial guidance in these complex situations.
Why You Should Speak to a Life Insurance Attorney with Experience in Suicide Denials
If your claim has been denied due to suicide, it is vital to consult with a life insurance attorney who has at least 15 years of experience handling suicide-related denials. These cases are highly sensitive, and insurers often rely on technicalities in the policy wording to deny claims. Having an experienced attorney on your side can make all the difference in challenging the insurer's decision.
At our firm, we have successfully handled hundreds of suicide-related life insurance denials. Our approach includes submitting a detailed 100-200 page legal brief to the insurance company, outlining why the denial is unjust. In fact, we have successfully resolved every one of these cases, ensuring that families get the compensation they are entitled to.
Key Steps to Take if Your Claim is Denied
Document Everything: Keep copies of all communication with the insurance company, including denial letters, phone calls, and emails. This will help your attorney build a strong case.
Review the Policy: Make sure you thoroughly understand the terms of the life insurance policy. Pay particular attention to exclusions and contestability clauses that may apply in suicide cases.
Hire an Experienced Life Insurance Lawyer: An attorney with expertise in handling suicide-related denials can help you file an appeal or even pursue litigation if necessary.
Don’t Accept the Denial Without Action: If the insurer rejects the claim, do not give up. In many cases, a well-prepared appeal can result in a reversal of the decision.
Conclusion
A life insurance policy is supposed to provide financial relief to your loved ones in their time of need. Unfortunately, in cases of suicide or self-inflicted injuries, the insurer may deny the claim based on suicide exclusions in the policy. However, all is not lost. With the help of an experienced life insurance lawyer, you can challenge the denial and seek the compensation you deserve.
If you’ve faced a denied life insurance claim due to suicide, don’t wait—reach out to an attorney with extensive experience in suicide-related life insurance claims. We’re here to fight for your family’s rights and ensure that they receive the financial support they need during this difficult time.