Does it cover life insurance suicide? - InsuranceRise

Saturday, 23 July 2016

Does it cover life insurance suicide?



There is life insurance in what is known as suicide exclusion is a clause that limits the payment of the policy if the insured commits suicide during the first year of the policy. Thus, if the insured committed suicide during this first year, the insurer can refuse to cover beneficiaries.

This clause is present in virtually all life contracts and is contained in Article 93 of the Law of Insurance Contract: "Unless otherwise agreed, the risk of suicide by the insured will be covered from the course of a year time of conclusion of the contract. for these purposes means suicide that caused death consciously and voluntarily by the insured himself. "so if the insurance policy is not a clause broader term includes means that the insurer must cover suicide whenever it occurs after a year of having contracted the policy.

Apart from the above mentioned why that insurance companies making use of this clause during the first year of the contract is simple. The intention in any case is to prevent fraud This clause protects insurers from excessive demands are made because of the suicides committed by policyholders and frauds committed by those who buy a life policy to then commit suicide and thus benefit their families by allowing they charged the amounts stipulated in it.

A year since the formalization of the policy it is possible that beneficiaries can collect the policy provided that it is current payment. But for this the insurer will conduct a thorough investigation of everything surrounding the incident to dismiss it because of a deliberate and planned fraud from contracting the policy. We must remember that if finally the insurance investigation concludes that fraud has been committed will not pay the claim.

Another important fact to consider is that if there is anything wrong in the policy, such as the insured refuses to have a disease when you really do the suffering, and last year's suicide occurs, the insurer may refuse to cover the claim arguing that having known the real risk had not insured.
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