Life Insurance Coverage and Suicide

It used to be that suicide is totally unacceptable to the church and to the state. Remains of a person who has decided to take his/her own life were not allowed to be buried decently in a consecrated ground or a cemetery. Church rites accorded to dead people are also not conducted for that person. When it comes to life insurance, it was impossible for beneficiaries of that person to file for claims. The advancement of medical studies has made all of us understand inevitable and natural mental health issues that lead to suicide. The church, the state, and now the insurance industry have all opened their minds to understand that suicide occurs as a consequence of imbalanced mental health conditions. Thus, most Australian insurance firms now cover suicide when providing claims to beneficiaries. However, there are still specific conditions applied to obtain life insurance policies that would also pay claims to beneficiaries of a policyholder who committed suicide. Such conditions may contain provisions that are unique from one insurer to another. In general, insurance firms intend to protect their selves against policyholders who decide to commit suicide to make money for their beneficiaries. Some companies may require mental health documents that could outline and indicate the deceased person’s tendency to commit suicide. Specific waiting period is also set. Most Australian insurers set a 13-month waiting period. It is best to find out more details about this situation in the policy disclosure statement provided by the insurer to the policyholder.

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