Does Life Insurance Pay For Suicidal Death?

Life Insurance is basically designed to cover for the death of the person insured due to critical illness, accident and natural causes. But how about the self-inflicted loss of life? Does Life Insurance pay for suicidal death?

The answer to this is "Yes".

And "No".

It Depends

It depends upon when the suicide is committed. If it is committed within the first two (2) years of the insurance policy or of its last reinstatement, then the claim will not prosper.

But if beyond two (2) years (incontestability period) then yes, the insurer is required by the law to honor the claim under Section 183 of the Republic Act No. 10617 also known as the Insurance Code of the Philippines.

"The insurer in a life insurance contract shall be liable in case of suicide only when it is committed after the policy has been in force for a period of two (2) years from the date of its issue or of its last reinstatement, unless the policy provides a shorter period: Provided, however, That suicide committed in the state of insanity shall be compensable regardless of the date of commission."

The exception to the Rule

The provision of the law says it all. Also stating the exception to the rule in the last sentence of Section 183. In cases where the suicide is committed in the state of insanity then the happening of it whether within or beyond two years of the policy or its last reinstatement, will held the insurer liable to pay the claim.

And unless otherwise, the insurance policy declares that it will honor the claim within a shorter period or that suicide is covered by the contract, then the law shall prevail.



Conclusion

Does Life Insurance pay for suicidal death? It depends. It depends upon the following:

  • Timing of Death
  • State of Mind of the Person Insured