Comments on: Can a life insurance company cancel a policy within the first two years of inception if suicide is suspected?

By: Justin

Justin — Mon, 15 Mar 2010 02:52:59 +0000

Most Life Insurance contracts have a two year “contestable” period. Any suicide during the first two year period will result in a refund of the premiums paid and no death benefit paid. After the policy has been in force for two years, a death benefit will be paid even in cases of suicide.

By: car253

car253 — Mon, 15 Mar 2010 02:00:45 +0000

Somethings about this story is not clear. How did the insurance company find out about the mental disorder? As long as the customer did not lie on the application there would not be a cancellation even if something came up later.

The insurance company could refuse to pay if there was a death by suicide within the first 2 years of the policy. Are you sure that maybe your friend just didn’t forget to pay the premiums?

You might call the Department of Insurance in your state for help. And, you might consider getting your friend a power of attorney to handle health and personal matters until they get better.

By: BSherman

BSherman — Mon, 15 Mar 2010 01:12:29 +0000

Life insurance does NOT pay a benefit when the cause of death is suicide. A suicide exclusion is written into every life insurance policy.

By: Tom Z

Tom Z — Mon, 15 Mar 2010 00:46:40 +0000

They can not cancel the policy if they suspect someone has become suicidal after the policy is issued. But, and this is a big but, if they have evidence that the person was suicidal before the policy was applied for and withheld that information the company has the right to rescind the contract.

For example if your friend was already receiving psychiatric care and did not disclose that on the application that would be grounds to rescind the contract. A rescission of a legal contract is technically not a cancellation but is instead the unmaking of the contract bringing the parties to the position they were before the contract was entered into..

By: richard d

richard d — Mon, 15 Mar 2010 00:08:25 +0000

they can cancel any policy with in two years or you keep paying and tell you that they don’t pay on death withing two years. it will cost but its best for you protection to paid a lawyer to get an life insurance policy for you that way you know you protected