Seth asked in Business & FinanceInsurance · 4 weeks ago

Life insurance and suicide?

Hello, my dad recently took his own life. He had a $20,000 life insurance policy provided through his work and had held the policy longer then 2 years. The issue I am worried about is he had been on a informal leave of absence for 3 months. He was still technically a legal employee of them that was hired in to work full time, But had not worked in 3 months. My question is do you believe life insurance would usually cover this with it being a suicide and with him not having worked actual hours for 3 months. We meet with a lawyer soon I just would like to know so I can start planning how we will pay his debts down. Thank you

18 Answers

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  • John
    Lv 6
    3 weeks ago

    Any answer which says that the policy will definitely either pay or not pay based on suicide is incorrect.  Almost all life insurance policies have a suicide clause which only applies for the first 12 to 24 months of the policy.  Consequently, the details of this particular policy's suicide clause, combined with how long the policy was in effect, will determine if there will be a payment.

  • 4 weeks ago

    Unless the debts are joint debts with your mother and she is still living, you and your siblings are not responsible for the debts of your parents. As far as the insurance proceeds are concerned, I'd file a claim without an attorney because an attorney will take a % of those proceeds as his fee. Should they be denied I'd then hire an attorney for an appeal. As he has been out of work for 3 months, were the payments being made by the employer for this coverage. The HR Dept there should be able to verify this. A little research on your part could save you thousands that are needed for your family. Lastly, some policies do not pay for suicide dearhs whereas others cover them after the policy has been in force for a period, usually a year or two. This will be shown on the policy. Good luck.

  • garry
    Lv 5
    4 weeks ago

    like insurance doesnt cover suicide , read the fine print  .

  • 4 weeks ago

    No you will not get his insurance death benefit because of an insurance clause that rule out suicide  

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  • Anonymous
    4 weeks ago

    Many policies stipulate that there is no payment for self harm.  You'll have to read the policy to know.

  • 4 weeks ago

    You may not owe any of his debts. Heirs usually don't have to pay them with the exception of a home mortgage, home equity line of credit, or reverse mortgage, which must be paid by someone. All of his other debts, such as credit cards, will not be collected from the estate. Any vehicles will most likely be repossessed unless the payments are continued. Your attorney will advise you what you need to pay for. 

    Life insurance may or may not pay you on learning it was a suicide. If the insurance did not lapse, it would still be in effect; but it really depends on the type of policy he had. You're going to need the actual policy or the originating documents he signed, as well as the policy number. His case will most likely be decided by the company as to whether they will pay his death benefits. Pretty much all life insurance companies decide these on an individual basis. 

    Very very sorry for your loss--it's a hard time for you.  Seek out expert advice. 

  • car253
    Lv 7
    4 weeks ago

    A Hunch gave the perfect answer.   Other answers mostly wrong.    You don't need an attorney.    Sorry for your loss.

    Source(s): Insurance Agent a long, long, time.
  • 4 weeks ago

    You do NOT need to use life insurance to pay down debts.

    That is the money of the beneficiary - to use for whatever you would like.

    His debts died with him, unless he is married and lives in a community property state.

    If dad only has debts and not enough assets to pay them, no sense dealing with an attorney.  It will only cost you more money that you don't have.

    If the policy at work is paid for by the company and your dad was on job protected leave, the policy is still in effect.

    If the policy is fully paid for by your dad and he was not submitting payment to the company, it might have been terminated.

    The policy will cover suicide.

    I'm sorry you are having to deal with this.

  • 4 weeks ago

    Unless "we" includes his wife and they are debts a spouse may be responsible for, you only pay down his debts if he left money behind to do so. His life insurance goes to the beneficiaries and does not have to be used for his debts. You may need it to pay for funeral etc. however.

  • y
    Lv 7
    4 weeks ago

    Individualize policy will have the suicide clause. For example mine is there is no payout if the suicide is within the first year of the policy. After the first year, it does pay out. As far as the three months thing, if the policy premiums were still being paid, the policy is still in effect. If the story is as you say and such.

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