We face trying times in the year 2020, a pandemic, an uncertain economy, lock-downs, riots, record unemployment, and a tumultuous election year. Our over-connected society makes us feel more alone than it ever has. It’s no wonder that one of the biggest trending questions on Google Trends has been “Does life insurance cover suicide“? The CDC lists suicide as one of the leading causes of death in the US. In 2018 Suicide was the tenth leading cause of death overall in the United States, claiming the lives of over 48,000 people. If you look at the U.S. Suicide Rate 2000-2020″ target=”_blank”>chart below 31.87 percent died through suicide in the last 20 years.
What do Utah laws say about suicidal death life insurance coverage? Title 21A Chapter 22 is Utah’s clause for standard life insurance policy suicide exclusion period. It discusses that suicide is not a defense for a life insurance carrier not to pay a claim for a life insurance policy if it has occurred two years from the date of when the policy was issued. In some other states, only one year is needed for the waiting period. This is to ensure that no one purchases a policy for the intended purposes of using life insurance for suicidal death. You should be familiar with your purchased life insurance policy if you think that you would need this covered in the future.
Again while I was stationed in Bad Kreuznach, Germany (1995) there was a financial salesperson who sold life insurance and mutual funds to military members in the barracks. He sold me something that had 20 dollars going to a life insurance product and 80 dollars going to a mutual fund. That mutual fund he sold me did very well since this was the middle of the .com boom. I have no idea what happened to that life insurance product after I exited the military and stopped paying for both products, the mutual fund helped me pay for college and post-military living. Either way, the lack of explanation about the life insurance product and what it did made it worthless. A 5-year pay whole life product with a good dividend aimed at being used for college could be useful to a military member.
All individual life insurance policies have a suicide clause and you should be familiar with it. However, if suicide is not covered, more than likely a return of premium is owed to the beneficiary. Your employer’s group coverage more than likely does not have a suicide clause in it. You should be able to find more about specific coverage from your human resources department. This information will be in the organization’s master policy. Also if you are in the military SGLI covers suicide also.
An analysis of your physical and mental health will be part of the underwriting for your life insurance policy. Many times the underwriting questionnaire will ask if you have depression or anxiety. It will also ask questions about antidepressants and other similar medications also. It’s always best that you tell the truth even if this gets you less than the preferred rate. Medical disclosure during underwriting for life insurance ensures the life insurance benefit does not get denied upon your death. Many life insurance policies often provide a no physical exam option for only a few dollars more a month where you won’t be forced to discuss as many of these details related to mental health.
Suicide can have a lasting negative effect on your family. Your family has a need for you beyond just monetary support. If you have found this article through a Google Search or some other means we would like to ask you to get help. If you live in Utah some of your resources could be your church. However, sometimes clergy is not enough to assist you with your problems, so check your local medical facility such as InterMountian who has suicide prevention resources. Additionally, here to link to Utah’s state government suicide prevention programs.
We hope all this information has been informative and we hope you give us a call. Not necessarily for a life insurance quote but just for someone to talk to about any financial issues you may be overwhelmed with right now. If it finances all together that is bothering you don’t let it be a focal point making life harder for you. Call us and let us take you out for a coffee and see how we can help you recover financially.
I am a term life, infinity banking concept, indexed universal life insurance, and annuities advisor. I am looking to give Utahans a choice in life insurance as an independent advisor. I represent over 25 different insurance carriers on your behalf so we can find which one will approve you for the best policy. I started this company (Wasatch Smart Finance) so people like you could finally get honest answers & advice from advisors who have a comprehensive knowledge of finance and estate issues. Also as a Veteran, I want to assist other Veterans in their financial journeys.