Does Term Insurance Policy Cover Suicide?
Updated On Dec 27, 2023
Suicide is a very complex topic that can have many different causes. Suicide is also one of the most common causes of death for people aged 15-44 years old. Suicide is currently not covered under most standard life insurance policies, as it is considered an accidental death. This case can be different in certain cases. For example, some life insurance policies will cover suicides performed as part of a cry for help or in response to a serious emotional problem.
Suicide is a problem that is on the rise in India. In 2014, suicide was the tenth most common cause of death in India. Suicide is not covered under any form of insurance in India. This leaves people who are struggling with suicidal thoughts without a way to get help.
Table of Contents
What Is Term Insurance?
Term insurance is designed to provide temporary financial security in the event of an unexpected death. Because suicide is not generally considered an accidental death, it may not be covered by your term insurance policy. If this is the case, you may wish to consider purchasing a separate suicide protection policy.
Is Death Due To Suicide Covered In Term Insurance?
One question that many people are concerned about is whether suicide is covered by term insurance. When someone dies as a result of suicide, it can be difficult to prove who was responsible for the death. Sometimes it can be difficult to know for sure if suicide was the cause of death or if another factor was involved. In general, term insurance policies do not cover suicides or deaths due to suicide. This means that when a person dies as a result of suicide, their family may not be able to receive any benefits from their policy.
Many people believe that suicide is not covered under standard life insurance policies. This is because the policy typically only covers accidental death or death due to an illness. Suicide is not typically considered an accident and therefore, it may not be covered.
Reasons Why Suicide Is Not Covered In Term Insurance?
In India, suicide is not covered under most term insurance policies. Only around 10% of all suicides in India are covered by term insurance. This is mainly because the legal definition of suicide varies from state to state and even from country to country. In many cases, suicide is defined as an act of self-harm that doesn't result in death. This means that many people who commit suicide don't fall under the definition of a "death due to suicide.
There are a few reasons why suicide isn't typically covered by term insurance in India.
- One reason is that the legal definition of suicide can vary significantly from state to state and even from country to country.
- This means that if you're suicidal and you live in a state where it's not considered an act of self-harm to commit suicide, your policy may not cover you for committing suicide.
Do Insurers Provide Cover for Death by Suicide?
No, suicide is not covered by insurance policy by the insurers so it is better to avoid it and find another solution.
Take Away
There are many reasons why suicide isn’t covered by insurance in India. One reason is that suicide is not considered a natural death. It’s considered an act of suicide, which means it’s not covered by insurance policies that are intended to cover natural deaths.
Another reason is that there isn’t enough data about suicide to make accurate predictions about whether or not it will be covered by insurance policies. This makes it difficult for insurers to justify covering suicides as part of their risk pool.
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