Reader’s Question:

I am from Brooklyn and I have a life insurance from a local insurer in NY. I just wanna know, will the beneficiaries still receive life insurance if the insured committed suicide?

Nancy

Brooklyn, NY

That’s an interesting question Nancy

Suicide is indeed a very controversial case. This means that life insurance companies in Brooklyn NY or any state for that matter, may treat the case differently based on their own judgment. However, if we trace back to the cases of suicide, the court have always favored the beneficiaries in cases if the suicide is proven to be purely incidental (no trace of murder or insurance reasons). This means that the life insurance benefits are still given to the beneficiaries. However, in most cases, the life insurance company only returns the total amount paid by the insured if the policy is still enforced within two years of policy life. If the life insurance policy goes beyond two years, that’ the time that the beneficiary receives the actual death benefit of the insured.

The two years policy-life in life insurance is mostly related to contestable period. A contestable period is a period to trace fraud and lies on the application. Most life insurance companies in Brooklyn New York NY may find it necessary to simply return the premium amount within the contestable period when the insured committed suicide. To be sure of how suicide is treated, it is best to check on the provision in the life insurance policy. Again some companies in New York treat it differently and it may be that their life insurance products specifically disregard cases of suicide in the contract. If not, then the general provision I stated earlier may apply.

Tags: life insurance, life insurance benefits, life insurance claims