Life insurance beneficiaries often assume that once the insured passes away, they can begin collecting the policy’s benefits. While this is generally true, there are specific exclusions that could prevent a payout, one of the most common being the suicide clause. For example, a $150,000 New York life insurance claim was initially denied due to a suicide exclusion, but with the right legal intervention, we were able to successfully secure the full payout for the beneficiary.
Understanding how suicide clauses work in life insurance policies is critical for beneficiaries who may find themselves in this unfortunate situation.
What Are Suicide Clauses in Life Insurance?
A suicide clause is a provision within most life insurance policies that excludes coverage if the policyholder dies by suicide. This clause typically applies during the first two years of the policy, although its exact terms can vary. The clause often refers to "suicide," "intentional self-destruction," or "death by one's own hand." These terms, though seemingly straightforward, can raise questions regarding interpretation, especially in cases where the insured’s intent is unclear.
While suicide clauses are commonly found in life insurance policies, they are often buried within the fine print. Beneficiaries might not be aware of their existence until a claim is filed, only to find their payout denied because of this exclusion.
What Circumstances Qualify as Suicide?
In the event of a life insurance claim being denied due to a suicide clause, courts will typically assess whether the decedent’s death was indeed a suicide. The presence of a suicide clause in the policy means that the insurer will likely refuse to pay any benefits if the cause of death is ruled as suicide. However, several situations exist where a death might be considered a suicide by the insurer or the court, including:
Felonious Activity: If the insured dies while engaging in a criminal activity, such as overdosing on illegal drugs or alcohol, or during a violent confrontation with law enforcement, the death may be classified as a suicide.
Acts with a High Probability of Death: Engaging in reckless behaviors, such as playing Russian Roulette, using excessive alcohol or drugs, or intentionally putting oneself in dangerous situations that have a high likelihood of resulting in death, may be considered suicide.
Obvious Self-Inflicted Death: Situations where the decedent takes their own life in an obvious manner—such as shooting themselves, jumping from a high building, or hanging—may easily fall under the suicide clause.
When Is Death Not Considered Suicide?
There are scenarios where the death may not be classified as suicide, despite it being self-inflicted. These include:
Homicides: If the decedent was murdered by someone else, the death is not considered suicide. A request to be killed by another person, even if made by the decedent, constitutes a homicide.
Self-Inflicted Deaths at Work: If the insured dies by self-inflicted means during the course of their employment, such as jumping off a building while at work, this might not fall under the suicide clause.
Reckless Driving or Speeding: Deaths caused by reckless behavior, like driving at an extremely high speed on the highway (e.g., 100 miles per hour), may not be classified as suicide, especially if the death is deemed accidental.
Unintentional Overdoses: If the insured dies from an unintentional overdose, whether from drugs or alcohol, this may not be considered suicide, depending on the circumstances surrounding the event.
Mental Illness: In cases where the insured was suffering from a severe mental illness, particularly one that impaired their judgment, the death might not be classified as suicide. Laws in this area vary from state to state, so legal counsel is crucial.
Why an Experienced Life Insurance Attorney Is Essential
If you are a beneficiary facing a denied life insurance claim due to a suicide clause, it’s vital to consult with a skilled attorney. Insurance companies often default to denying claims based on the suicide clause whenever there is ambiguity surrounding the cause of death. However, whether or not the death constitutes suicide can be highly subjective and varies based on the specifics of the case.
An attorney with expertise in life insurance law can review the policy’s language and help you determine if the insurer is wrongly denying the claim. Legal counsel is also critical in ensuring that all necessary evidence is gathered and presented, strengthening your case and maximizing your chances of recovery.
In the case of the denied $150,000 New York life insurance claim, we were able to successfully argue that the insurer’s initial denial was incorrect, ultimately securing the full payout for the beneficiary. If you are dealing with a similar situation, seeking expert legal advice is your best course of action.
Conclusion
Suicide clauses in life insurance policies are complex and can lead to significant challenges for beneficiaries, especially if the cause of death is ambiguous. While these clauses are meant to exclude payouts for deaths by intentional self-destruction, many situations may not necessarily fit that definition. Consulting with an attorney who specializes in life insurance claims is crucial in navigating these complexities. With the right legal representation, it’s possible to successfully challenge a denied claim and ensure that you receive the benefits to which you are entitled.