Is the discrimination worth it as a deterrent? Or is it just to save the instance companies $$$?

  • @[email protected]
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    592 years ago

    A life insurance policy doesn’t have to pay out if you take out the policy AND commit suicide in a short period of time. If it’s after that period of time the policy MUST pay out. That is law. Former life insurance salesman here.

    So since it is a relatively short period of time, it’s say it shouldn’t have any real change in suicide rates

    • @[email protected]
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      72 years ago

      Let’s say your mental health issues has been known before you took out the policy, would that affect the payout regardless of time between taking it and the suicide?

        • @[email protected]
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          62 years ago

          Typically no. Life insurance companies don’t like anything regarding mental illnesses. Largely because it’s under researched, so they just say “no thanks.”

        • @[email protected]
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          82 years ago

          If they even underwrite it and don’t just decline coverage anyway.

          My wife got declined for being underweight by 10lbs. No way they underwrite someone with documented suicidal ideations.

          • @[email protected]
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            22 years ago

            I’m not sure what you mean by underwriting it and declining coverage anyway. But you’re correct, it is challenging to get somebody approved for taking medication relating to anxiety/depression. If they have a history of being hospitalized, they will not approve the underwriting.

            It’s surprising that your wife got declined for being 10 lbs under weight. If that was truly the only problem, I’d be able to get that approved through just about anybody. Which company did you use?

            • @[email protected]
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              32 years ago

              I didn’t say underwrite it and decline coverage anyway.

              I was speaking to your statement of it wouldn’t affect payout but would affect premiums.

              It would affect the premium if they do decide to underwrite it at all and don’t just decline you.

    • @[email protected]OP
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      62 years ago

      I didn’t realize there was a time limit on the non-payout. That’s good to know. Friend of a friend just took his life and I’ve been worried about the kids. Hopefully they will be taken care of.