8.9 C
Friday, February 3, 2023
- Advertisement -Newspaper WordPress Theme
InsuranceDoes life insurance cover funeral cost if suicide?

Does life insurance cover funeral cost if suicide?

Any life insurance has some terms included in it for mitigating claims upon suicide or self-harm. Claims forced by beneficiaries upon the insured’s death need to meet the suicide clause. Therefore, life insurance may cover the funeral costs even if it is a suicide, but conditions exist.

Typically, a suicide clause works within a period of two to three years. Moreover, it can vary between different policies and companies.

The purpose behind this condition is not the insurers’ ill intention of not accepting the claims. Does life insurance cover funeral costs if a person commits suicide? It requires further explanation.

Throughout this essay, we will try to throw light on different critical aspects of this.

How does the suicide clause work in life insurance?

The suicide clause is one typical clause you will find in almost any life insurance policy. It is one of the many clauses of life insurance that strengthen the insurance process.

As we have mentioned, it generally takes two to three years for a suicide clause to become invalid. In simple terms, if the insured dies by suicide during this time, his beneficiaries won’t get any death benefit.

This clause activates with the policy’s activation and stays active for a certain period of time. But if the insured dies by suicide after this waiting period has passed, beneficiaries will get the death benefit. And the funeral cost is included in this.

In addition, every time the insured renew or change the policy suicide clause will be set afresh. That means the waiting period will start again.

However, the insurance companies take measures so that the insurers don’t get policies with the intention of attempting suicide. It can become an alarming case if the insured’s financial imbalance makes him choose this path.

By pulling out this suicide clause, the insurance company may resist the insured’s suicide attempt for at least several years.

Moreover, another clause can give a deeper understanding of the question: does life insurance cover funeral costs if a person commits suicide? So, stay tuned. Check this out for a shorter note.

What role does the contestability clause plays in this?

Another interesting clause that gives the insurance companies an upper hand is the contestability clause. People often confuse this clause with the suicide clause. It is not unexpected as the time periods of both of these clauses overlap.

However, a contestability clause includes a wider range of terms than a specific suicide clause. Typically, this clause has a time length of two years. It gets activated when the beneficiary claims the policy within the first two years of the policy. In the meantime, the insurer examines the validity of the claim.

Many things come into notice. This clause is often a formality if all the paperwork is fine and the policy claim passes all validity tests. But an insurer can deny the claim by applying the contestability clause if any fraud is committed.

An insured person can naturally or accidentally die within the first two years. This doesn’t make the policy claim invalid. But this enables an insurer to investigate further. However, an insurer has full authority to decline the policy claim at any time for valid reasons. But the first two to three years are crucial.

Incorrect or hidden info, mismatch in cross-checking process, etc., anything can make the clause come into play. To further declare, unintentional errors do not tend to hinder the application process. The insurer can correct them over time.

If an insured had an ulterior motive for attempting suicide, this clause could help deny the policy claim. This clause also starts again with the renewal or change of the policy.

I guess this clause answers the question: does life insurance cover funeral costs if a person commits suicide? However, you can find more additions to terms in various policies. Companies can apply for new terms too. You can see more here.

What makes the contestability clause different from the suicide clause?

The suicide clause only deals with the suicide cases in the first two years. But the contestability clause deals with many things.

In the overlapping time period, the investigation process starts based on the contestability clause. If it is a suicide case, the suicide clause is applicable. Nonetheless, the contestability clause can also be applicable if it is also a fraud-related case.

The purpose behind putting these clauses

Any established policy company would never like to delay the policy claiming process by making it a struggle. It would make their reputation go down.

These clauses help the policy claiming process run orderly. Some tend to take advantage of the policies that are available to the fittest, who don’t need a medical examination. They hide information to get away with a lower premium.

Though there is an underwriting process that should filter out the truth, these clauses help further.

About group insurance’s coverage upon suicide

Group insurance works differently in structure from individual insurance policies. The employer of the company pays the premiums for the insurance. Here the middle man of the policy or the insured is the employer or the company itself. Typically, the contestability clause does not work here. Therefore, a death benefit, including funeral costs, is still applicable even after an employee’s suicide within the first two years.

However, in certain cases, employers may get customized life insurance policies that include suicide or contestability time restrictions. Here the company can give the full answer to the question: does life insurance cover funeral cost if suicide? But the supplemental policies added individually by the members of the group insurance follow the contestability clause.


If we say life insurance covers funeral costs upon suicide, it would be just a vague answer. Suicide committed within the first 2 to 3 years can negate the death benefit. But life insurance will cover the funeral cost for a suicide that happens after a certain time period.

However, the beneficiary can still get the premiums as a refund. But fraud or tampering with the information can force the contestability clause in claim denial.

That is why being transparent in the application process can save the insured from losing out on the death benefit. For example, a person experiencing depression needs to add this info in the interview process.

We are optimistic that you got a clear answer to the question: does life insurance cover the funeral cost if suicide?

Lastly,we hope you have a safe return to another piece of writing.


Please enter your comment!
Please enter your name here

Subscribe Today





Get unlimited access to our EXCLUSIVE Content and our archive of subscriber stories.

Exclusive content

- Advertisement -Newspaper WordPress Theme

Latest article

More article

- Advertisement -Newspaper WordPress Theme