Life insurance policies providing coverage for suicide - Part 5

Regarding coverage of suicide by a life insurance policy. Most states follow the NAIC model which actually does cover death by suicide provided: a.) the policy has been in effect for at least two years, although this does vary somewhat by state, and b.)the exclusionary clause is no longer in effect. While different companies have different underwriting requirements, all may either rate, decline or postpone for mental illnesses, diseases, or conditions. If this is a concern it is vital that the insured and owner be completely candid and honest with the agent they are working with and the company’s underwriters. Any attempt to conceal or misrepresent information which has been specifically requested is fraudulent. All companies have the right and the obligation to protect themselves from unacceptable risk. The states have recognized, however, that mental illness can occur and result in death and does not relieve the company of its contractual obligation. Fortunately for the consumer, most Insurance Commissioners are really very consumer oriented.