Life insurance is a great way to prepare for your family’s future, but it’s also important to know what coverage you have and what limitations are associated with it. One common question life insurance customers ask their agents is, “Can my policy pay out on suicide?” The answer is yes, but the circumstances under which this happens aren’t always clear. In this article, we’ll explore the reasons some policies pay out on suicide and others don’t.
Suicide Clause in South Africa
Let’s recap what you’ve learned about the suicide clause. A life insurance company in South Africa will not pay out on a policy where the death occurred within one to two years of taking out the policy if you show that suicide was the cause.
Contact a Life Insurance Company
If you’re considering life insurance with suicide clauses, it’s important to know exactly what those clauses are and whether they’ll apply to your situation. The best way to find out is by contacting a life insurance company directly and getting all the facts.
Ask about their policy: The first thing you should ask when researching a life insurance company’s policy is how long it’s been in place. If they’ve only been offering these kinds of policies for a short period, there may be some aspects their data analysis can’t yet fully account for that (such as the recent increase in mental health issues among millennials).
Ask about their suicide clause: As mentioned above, some companies will pay out on suicides even if those suicides occur after a certain point in the policy period—they just won’t pay out right away as other companies do. Make sure you know what kind of “waiting period” your potential insurer has before making any final decisions!
With suicide, life insurance companies in South Africa do not pay out on their policies. This is because the law does not allow a person to profit from their death and suicide is treated as an illegal act that can be prosecuted.
The answer to your question “does life insurance pay for suicidal death in South Africa?” is no. Life insurers will not pay out on a policy if they deem your death to be because of an act of self-harm or suicide.
Conclusion
This is where we as a company can help you. We have relationships with life insurance companies that will still pay out on the suicide clause in South Africa your actions did not cause the death.
