Legal Question in Insurance Law in Pennsylvania

Re: Payoff in event of suicide

As usual in the law, the answer is, "it depends."

First, it depends on the terms of the policy.

Next, it depends on how long the policy has been in effect.

Next, it may depend on whether the insured accurately disclosed past psychiatric history in the policy application.

Many policies become "incontestible" after they've been in effect to two years. (Actually, PA's insurance law requires such a provision).

Many policies I've seen expressly state that they will pay in the event of a suicide, but only after the policy's been in effect for two years.

If the policy is not two years old, then it depends on whether there's a suicide exclusion. And even if not, the company might try to investigate the person's mental health history to see if it was disclosed in the application.

On life and disability policies, when a claim arises shortly after the policy is issued, the companies often investigate the past history because if they can show that problems were concealed on the application and they wouldn't have issued the coverage if they had known, they can try to rescind the policy and refund the premiums instead of paying the claim.

If your question is not hypothetical, and you've recently lost a loved one in this tragic way, please accept my condolences. Our firm has handled a number of suicide cases and we know how the heartbreak is enormous for everyone left behind.

You certainly should contact an attorney to get actual advice on your particular case; I'd be happy to talk with you about it.