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Features
Ref. No. KLI/22-23/E-BB/492
For those wondering, does life insurance cover suicide? Yes, life insurance does provide a payout for suicidal deaths, but this is subject to certain policy terms. Insurers have established specific clauses regulating the payout for such cases. Understanding these provisions is crucial before purchasing a life insurance policy, ensuring that families remain financially protected even in unfortunate circumstances.
In India, some of the life insurance policies cover suicidal death benefits, but they come with specific conditions. If the policyholder dies by suicide within 12 months from the start or revival of the policy, the nominee is authorized to receive 80% of the premiums paid. However, in the case of Unit-Linked Insurance Plans (ULIPs), the nominee receives the fund value available on the date of death. Policies issued before January 1, 2014, may not provide any payout for suicidal deaths within the first year. Always check the policy document for specific terms and conditions when evaluating does life insurance cover suicidal death under different plans.
Suicide coverage in life insurance policies is subject to specific terms and conditions outlined by insurers. Here’s what you need to know:
Suicidal deaths are a sensitive and complex aspect of life insurance policies. Insurance companies have specific provisions that dictate how claims related to suicide are managed. Let us understand how these policies usually address suicidal deaths:
Life insurance companies implement specific policies for suicide-related claims to ensure fair practices and financial stability. Here are the primary reasons why insurers have structured suicide death benefit clauses:
According to the life insurance suicide clause policies issued before January 1, 2014, it is stated that if the insured commits suicide within 12 months from the start of the policy or the date of revival, the policy becomes void, and a claim will not be accepted. Hence, no claim will be entertained when an insured commits suicide before the policy completes one year. If the insured commits suicide after 12 months of the policy issue, the family will receive a death benefit. Is suicide covered by life insurance? Yes, but only after the stipulated waiting period and as per the policy terms.
In the case of the policies issued after January 1, 2014, there is a change in the suicide clause. For a market-linked life insurance suicide clause, if the insured commits suicide within one year from the issue of the plan, the nominees will receive the policy’s total value. For traditional life insurance plans, nominees will receive 80% of the premium paid for death due to suicide within one year from the start of the policy. Does life insurance pay for suicide? Yes, but the payout is subject to the policy’s specific terms and conditions, including the waiting period.
1
Yes, life insurance covers suicide, but only after a waiting period of 12 months. If suicide occurs within the first year of policy issuance or revival, the nominee receives 80% of the premiums paid or the fund value (for ULIPs), depending on policy terms.
2
The suicide clause states that if the policyholder dies by suicide within 12 months of purchasing or reviving the policy, the insurer provides only a partial payout instead of the entire sum assured.
3
Most life insurance policies have a 12-month waiting period from the policy start or revival date. During this period, only a limited benefit is paid to the nominee in case of suicide.
4
Yes, most life insurance plans, including term plans, whole life policies, and ULIPs, provide suicide coverage, but the payout conditions vary. Group life insurance policies may exclude suicide coverage entirely.
5
If suicide occurs after the 12-month waiting period, the entire sum assured is reimbursed to the nominee. If it happens within the first year, only a partial payout is provided based on policy terms.
6
Yes, insurers can deny claims if suicide occurs within the waiting period, if there is non-disclosure of pre-existing mental health conditions, or if fraud is suspected during claim investigations.
Features
Ref. No. KLI/22-23/E-BB/2435
The information herein is meant only for general reading purposes and the views being expressed only constitute opinions and therefore cannot be considered as guidelines, recommendations or as a professional guide for the readers. The content has been prepared on the basis of publicly available information, internally developed data and other sources believed to be reliable. Recipients of this information are advised to rely on their own analysis, interpretations & investigations. Readers are also advised to seek independent professional advice in order to arrive at an informed investment decision. Further customer is the advised to go through the sales brochure before conducting any sale. Above illustrations are only for understanding, it is not directly or indirectly related to the performance of any product or plans of Kotak Life.
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