There are many ways for insurance companies to intentionally sidestep their obligations to policyholders. In some cases, they offer low settlements while people are desperate for financial relief. Other times, they may try to trick people into making statements that justify a reduced settlement or denied claim.
Sometimes, professionals working for the insurance company may knowingly misrepresent policy terms to convince people that they do not deserve coverage. When grieving family members file a life insurance claim, insurance professionals may try to deny or reduce their claim.
If suicide is the cause of death, do surviving family members lose the right to file a claim?
Suicide restrictions are common
Insurance companies lose money when they only collect life insurance premiums for a short amount of time before a policyholder dies. As such, certain elements of a policy’s coverage may not take effect immediately.
Suicide exclusions are common in life insurance policies. However, contrary to what many people believe, it is not a permanent prohibition on coverage. Instead, there is a waiting period that applies.
The policyholder generally needs to pay their premium for two to three years before coverage might be available to survivors after a suicide. The language included in every policy is different depending on the terms negotiated by the policyholder, state law and even company practices.
Families who have just lost a loved one may need to assess a life insurance policy carefully with a legal professional. Having guidance may make it easier to recognize if coverage is available and negotiate with insurance providers that are eager to deny the claim.