Does life insurance cover suicide?

Life insurance can cover suicide if it's unexpected. Here's what you need to know.

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Gary Ross Hunter

Edited by

Jason Loewenthal

Updated

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Key takeaways

  • Life cover in Australia typically will not pay out for suicide within a 13-month exclusion period.
  • Check policy documents carefully as cover can pay out after the exclusion period if mental health history was disclosed.
  • You can still get cover after a suicide attempt, but insurers usually require medical disclosures and apply premium loadings.
This summary was generated by AI and may contain errors or omissions.

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Will life insurance pay out after suicide?

In Australia, life cover will typically not pay out for a suicide that happens within 13 months of the start of the policy. This is to prevent people taking out life insurance for the sole purpose of committing self-harm, but it's also put in place to protect people at risk.

After the exclusion period, life insurance funds will pay out in a normal fashion, even if the life covered dies by their own hand.

Can you get life insurance if you've attempted suicide?

Yes, if you've attempted suicide in the past, it's still possible to get life insurance. However, your current and prior mental state can complicate things.

Like any pre-existing condition, an insurer will ask you a series of questions about when you first experienced symptoms and if you still experience symptoms. This is so it can try to determine how much of a risk it is to insure you and what to charge you for a policy.

In some cases, insurers may apply exclusions to pre-existing medical conditions. This can still be determined after the fact, if the insurer believes you lied on your application, it might not cover mental health-related death.

Applying for life insurance after a suicide attempt

>When you apply for life insurance, you're required to disclose details about your medical history – this helps the insurer determine how much it'll charge you for a policy. It will likely ask you:

  • When you first experienced symptoms and if you still do
  • Whether the cause of the problem has been identified or diagnosed by a qualified health professional
  • If you have been on medication or are currently taking medication
  • If you have a family history of mental health issues
  • About your general lifestyle, including if you smoke

Once you've applied for life insurance and your application has been assessed, insurers will likely apply a premium loading – a charge on top of the normal premium rate. This is because you'll be considered a more risky applicant because there's a greater chance you will make a claim.

Submitting a claim if your partner has committed suicide

If you've lost a loved one to suicide, you can submit a life insurance claim, so long as they held a policy in their name and meet the following criteria:

Number 1
They held the policy for longer than the exclusion period – this is usually 13 months – and the policy did not exclude death by suicide (this will be outlined in the product disclosure statement).
Number 2
They fully disclosed their medical history and answered all personal information honestly at the time of application. If they were dishonest, you risk having your claim rejected.
Number 3
You are their nominated beneficiary (the person they selected to receive the life insurance payout) – whoever is nominated will have to submit the claim.

Does life insurance cover a drug overdose?

Life insurance may cover a drug overdose, but it depends on the policy's terms, exclusions and any special conditions applied to your cover. If your policy has an exclusion period, it may be limited to suicide or intentional self-injury rather than applying to all causes of death, so check your PDS.

Additionally, you'll generally find many life insurers have specific exclusions related to drugs. For example, some won't pay out for claims which are caused or exacerbated by alcohol abuse or the use of drugs other than as prescribed by a medical practitioner.

Total and permanent disability cover usually also excludes any conditions directly or indirectly caused by drug use such as liver failure, heart attacks or Parkinson's disease.

When life insurance might not pay out

Before you take out life insurance, read the general exclusions section of the product disclosure statement (PDS). Here are some examples of when you might not be covered:

  • If suicide or intentional self-injury is listed as an exclusion
  • If you commit suicide within the exclusion period (usually 13 months)
  • If you are not truthful about your health during the application
  • If you take part in illegal activities, for example drug abuse
  • If you die during a dangerous activity (insurers often list dangerous activities like bungee jumping as an exclusion)

Where can I get mental health support?

If you need help, there are a number of resources available including:

FAQs about how life insurance can cover suicide

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To make sure you get accurate and helpful information, this guide has been edited by Jason Loewenthal as part of our fact-checking process.
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Gary Ross Hunter has over 6 years of expertise writing about insurance, including life, health, home, and car insurance. Having reviewed hundreds of product disclosure statements and published over 800 articles, he loves simplifying complex insurance topics for everyday readers. Gary has contributed to major outlets like Yahoo Finance, The Sydney Morning Herald, and news.com.au, and holds a Bachelor of Arts (Honours) in English Literature from the University of Glasgow, along with a Tier 2 General Advice certification, ensuring his work adheres to ASIC’s RG146 standards. See full bio

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Gary Ross has written 522 Finder guides across topics including:
  • Health, home, life, car, pet and travel insurance
  • Managing the cost of living
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