SUICIDE IS COVERED BY LIFE INSURANCE?

SUICIDE IS COVERED BY LIFE INSURANCE?

There is in life insurance what is known as exclusion for suicide which is a clause which limited the payment of the policy where the insured commits suicide during the first year of the policy. Thus, if the insured commits suicide during this first year, the insurance company can refuse to cover beneficiaries.

This clause is present in practically in all contracts of life and is collected by article 93 of the law of insurance contract: "unless otherwise agreed, the risk of suicide of the insured will be covered from the course of a year from the time of the conclusion of the contract. For these purposes means suicide death caused consciously and voluntarily by the own insured." Therefore if the insurance policy does not contains a duration clause more wide means that the insurance company must cover suicide whenever this occurs after one year of having contracted the policy.

Apart from the mentioned above why that insurance companies to use this clause during the first year of the contract is simple: the intention in any case is to prevent fraud. This clause protects the insurers of the excessive demands that are made because of the suicides committed by members and also committed fraud by those who buy a life policy can then commit suicide to benefit their families allowing that they charge the quantities entered on the same.

A year passed since the formalization of the policy if it is possible that the beneficiaries can charge the policy provided that it is aware of the payment. But for esto insurance company will carry out a thorough investigation of everything that surrounds the sinister to rule out be cause of a fraud intentional and planned from the hiring of the policy. We must bear in mind that if finally the insurance investigation concluded that fraud has been committed it will not pay the claim.

Another important thing to keep in mind, is that if there is any error in the policy data, as for example the insured to deny having a disease when really Yes suffered from it, and last year was produce suicide, the insurer may refuse to cover the incident claiming that to have known the real risk had not insured it.