Does life insurance cover suicide?

Life insurance normally pays out in cases of suicide, unless it happens during a particular exclusionary window laid out in the policy. Life insurance provides a financial safety net that can last for decades. One concern that some insurance shoppers have is that an insurance company won’t pay the death benefit if the policyholder dies. This is typically unfounded, as life insurance policies almost always pay out; there are even protections in place if a carrier goes bankrupt. But are there scenarios where life insurance won’t pay out? For example, does life insurance cover suicide?...

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Life insurance claim denied for misrepresentations.

On March 3, 2015, the Nova Scotia Court of Appeal upheld the denial of a widow’s application for life insurance benefits following the death of her husband, the insured, because the insured had materially misrepresented his medical history in his application for life and disability insurance. In Linden Estate v. CUMIS Life Insurance Co., an insured applied for life and disability insurance. The application included a supplementary health questionnaire to be completed over the telephone. The questionnaire included questions about the insured’s medical history. The insured...

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