FRIENDS DH COMMITTED SUICIDE - URG LEGAL ADVICE RE LIFE INSURANCE IF CAN ADVISE PLEASE

[NotMyNameButHereForever]

Friends DH committed suicide last week. Obviously there are a 1000 shades and angles of shit to this but the one thats occupying her mind - and terror - right now (& the only one I feel I can somehow help with) is that the life insurance they each took out for house/mortgage won't pay out as suicide - can anyone please advise? Does life insurance pay out for beneficiaries if policy holder died by suicide?

TIA

My husband sells life insurance

Its correct that there is a term applied to most policies so eg 12 months

Another factor is was this linked to mental health concerns? Did he suffer previously? Was that declared? Obv would depend if there is no exclusions

The insurance provider will want to know if there was any signs or symptoms prior to the sad suicide that should have been declared

All protocol and i am sure it will all work out r.e insurance

Your poor friend

One suggestion, OP, if it looks like it won't pay out would be for the friend to make no admission about suicide as the cause of death in any communications tot he bank or insurer and to informally guide the inquest, if possible.

The fact that it was a buy-to-let mortgage shouldn't matter. Basically the only link between the insurance and the mortgage is the mortgage determining the amount of cover - otherwise it's no different to any other life insurance policy.

It really does depend on the policy wording.

I’m sorry for her loss.

It depends on the policy. Some will pay put it if it's been in force for over 12 months.
Some will exclude suicide.
And some will pay out.

My Dad committed suicide, yes his policy did pay out.

My cousin was suicide and hers paid out. It will be in the policy details, ask her if she knows where they are and you can go through them for her perhaps?

@LadyMSM

My husband sells life insurance

Its correct that there is a term applied to most policies so eg 12 months

Another factor is was this linked to mental health concerns? Did he suffer previously? Was that declared? Obv would depend if there is no exclusions

The insurance provider will want to know if there was any signs or symptoms prior to the sad suicide that should have been declared

All protocol and i am sure it will all work out r.e insurance

Your poor friend

No, at point mortgage taken out zero mental health issues. Suicide appears due to couldn't take any more of (truly vicious) chronic physical health issues (again, not present at time mortgage taken out).

Zero access right now to documents as he took care of all of those and no contact w mortgage provider or life insurance company yet. TBH I'm just trying to get her a steer of some kind as it feels that's what she really needs right now (ie is stressing about on top of all the other obvious things shes going through/stressing about).

My own guess is that, unless life insurance separate to mortgage, then will not pay out as they're not even meant to be living there - is buy to let mortgage and her and DC moved in when the marriage got tricky (woeful understatement but I don't want to out her).

SO grateful for everyone's advice and help

It depends on the policy.

Many do pay out as long as any previous mental health symptoms are declared at the time of purchasing the policy and if the policy is over 12 months old.

I’m so sorry for your friend and her family.

My DB’s policy paid as more than a year had elapsed since it was taken out. Death in service benefits were paid pretty quickly by employer too.

A colleagues family member took his own life and if I remember correctly at the inquest it wasn’t recorded as suicide. I think there was no way to prove that he actually intended to end his life. The family knew he did. I’m sorry I can’t fully remember the details - it was years ago.

The fact that it was a buy-to-let mortgage shouldn't matter. Basically the only link between the insurance and the mortgage is the mortgage determining the amount of cover - otherwise it's no different to any other life insurance policy.

^ This. Who is the insurance with? Our Scottish Widows policy covers it apparently.

Are the circumstances of his death unambiguous? If there's no suicide note and the circumstances are open to interpretation, e.g. overdose or death on the road, rather than something more direct, then an inquest will probably record an open verdict or one of misadventure rather than one of suicide, which is a completely different matter as far as insurance is concerned. Sorry to be gruesome. It's a terrible thing to have happened.

MeepMeeep - exactly. Many people die who did not intend to commit suicide.

Unlikely fact that mortgage buy to let will affect the situation as the repayments and insurance premiums are generally higher than if one finances a house purchase for one’s own use.

Hi, life insurance will not be tied to mortgage and will be through different 'companies' even if via the bank eg hsbc, hsbc life. Dont let the btl property be a distraction

If you know the company (get your friend to look at direct debit on current account if she doesn't know) and the rough year it was taken out then you can probably find out via Google - this is assuming policy was set up on standard terms and no exclusions made at point of underwriting. Changes post acceptance dont effect a standard life insurance policy eg any illness, mental health issues. In my experience the mainstream policies exclude suicide in first 12 months

Op

Get the policy. Read it.

Very unlikely covered because not a fortuitous event.

And, OP, as almost always with legal and money events, it will depend on the jurisdiction. Some PPs appear to be giving advice based on England and Wales and some possibly from USA.

So sorry. One thing to check is whether there are any survivor benefits as part of is job, such as a Death in Service.

Zero access right now to documents as he took care of all of those and no contact w mortgage provider or life insurance company yet. TBH I'm just trying to get her a steer of some kind as it feels that's what she really needs right now (ie is stressing about on top of all the other obvious things shes going through/stressing about).

Tell her to phone them if she's up to it. They'll call up the policy on their computer and answer any questions.

Tell your friend to be very cautious (and you too) about what is said to the insurance company. Insurers will wriggle out of paying if they can and you do not want to give them ammunition to argue that H had MH problems which should have been disclosed.

Ideally stay off the phone when you can be drawn into chat and do all communication by carefully considered email or letter.

The buy to let bit should not matter , it’s the other way round that’s a problem if you are letting out and the company are not aware.

The best thing would be as a friend try and help with the paperwork.

If you are in the uk you can use gov uk to tell all relevant parties at once. You may need to help her fund a solicitor if there is property involved. Try and get her to take one day at a time and worry about the finances later .

My exh had a history of depression which was declared when we applied, so suicide was explicitly excluded from his part of the policy but not mine.

Your friend will need an incredible amount of support op, well done for stepping in. Suicide is horrific for those left behind, never mind all the practical and financial stuff.

I don’t think the situation with mortgage and where she lives will have any relevance to them paying out life insurance? But as others have said, she needs to get access to the documents ASAP and then do any communication with the insurance company through formal writing, with a lawyer if necessary, to ensure they don’t try to wriggle off the hook.

There is normally a rider on insurance payouts for suicides. It depends on the company and the policy, but an exclusion clause of 3 years, from when the policy was taken out, is typical.
Your friend needs to contact the insurance company (which she will have to do anyway). As PP have said, best follow up any telephone conversations with something written.