Life Insurance - Are Suicidal Deaths Covered By Life Insurance Policies?

Primary purpose of life insurance is to provide financial protection and peace of mind to loved ones in the event of a tragic loss.

Suicide is a tragic and complex phenomenon that affects millions of people in India each year. According to the National Crime Records Bureau, there were over 1, 39,000 suicides in India in 2019 alone. Given the high prevalence of suicide, many people may wonder whether suicidal deaths are covered by life insurance policies in India. The answer to this question is not straightforward and depends on several factors, including the terms of the policy, the circumstances surrounding the suicide, and the laws of the state in which the policy was issued.

Terms of the Policy

The first and most important factor that determines whether a suicidal death is covered by a life insurance policy in India is the terms of the policy itself. Life insurance policies are contracts between the policyholder and the insurance company, and the terms of the policy will specify the circumstances under which the policy will pay out a death benefit.

Source : Financial Express back

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