Are you planning to insure too? Then there is important news for you. Every day, numerous individuals take their own lives in the country. Some succumb to depression, while others may end their lives due to harassment from others. This raises a question among people: if someone who commits suicide had life insurance, would the insurance company pay out the claim to their family?
In the event of the insured’s death, the insurance claim is typically paid to the designated nominee. Unlike other types of insurance, life insurance does not involve maturity benefits. After completing some formalities, the claim is promptly disbursed to the family or nominee upon the insured’s death. However, if the insured takes their own life, the family must meet specific conditions to receive the insurance payout.
For life insurance policies issued before January 1, 2014, if the insured commits suicide within 12 months of the policy’s start or renewal, the policy is rendered void. If the suicide occurs after this 12-month period, the nominee is entitled to the full sum assured.
The rules changed for policies issued after January 1, 2014. If the insured commits suicide within the first year of the policy, the nominee receives 80 percent of the total premiums paid. If more than a year has passed since the policy was taken out, the nominee is entitled to the full sum assured.
