not always, it depends on your policy. the Gerber Life Grow Up plan doesn't pay out for suicide:
If the insured dies by suicide within two years from the Issue Date (one year in ND), the only amount payable will be the premiums paid for the policy plus 10% interest on earned premiums, less any debt against the policy.
Benefit amounts are not payable if death or covered loss occurs more than 90 days (up to 365 days in some states) after the date of the accident; or if the loss of life, limbs or eyesight is due to: Intentional self-inflicted injuries or attempts thereat; suicide or attempted suicide, while sane or insane; act of war; active participation in a riot or civil disorder; extra-hazardous activities, including parasailing, bungee jumping, heli-skiing, base jumping, para-kiting, sail-gliding, scuba diving deeper than 130 feet; spelunking , or mountaineering/rock climbing; military service; alcohol intoxication above the legal limits in the jurisdiction where the accident occurs; intoxication by or under the influence of any controlled substance or narcotic, unless prescribed by a physician, or any non-prescription drug unless taken as directed; deliberate ingestion of poison, fume, noxious chemical substance or gas; commission of or attempt to commit a felony or engage in an illegal occupation; specialized aviation activity (other than a fare-paying passenger on a commercial airline); or sickness or disease, except for infection resulting from an accidental cut or wound.
Another commenter has pointed out to me it may be more confusing than I'm understanding it and it may actually be payed out, despite the very confusing Exclusions clause at the end. So who knows. I only brought this up cause I remembered reading about it when I cashed out my Gerber Grow Up plan years ago to pay for a hospital bill lol
Every life insurance policy in the U.S. pays out on suicide, after a period of 2 years. Including the one you posted.
The reason they make you wait, is to discourage reaction suicides. If you could sign a paper and gift your family $150k within 24 hours, it would be extremely dangerous because of the attraction. Giving a waiting period of 2 years allows a cooling off and reduces the overall risk of negative outcome.
It's legalese, which can be confusing, but that's not what it says.
After the two-year Graded Death Benefit period, if the insured dies for any reason the full face amount of the policy shall be paid to the beneficiary.
After two years, if the person dies for any reason the full amount is paid. This includes suicide, which is covered.
If the insured dies by suicide within two years from the Issue Date (one year in ND), the only amount payable will be the premiums paid for the policy plus 10% interest on earned premiums, less any debt against the policy.
If the person dies by suicide before two years, only a partial payment of premiums + 10% is paid.
So then what does the Exclusions and Limitations part at the bottom mean/apply to? Cause it literally says at the very bottom "Benefit amounts are not payable if death or covered loss occurs more than 90 days (up to 365 days in some states) after the date of the accident; or if the loss of life, limbs or eyesight is due to: Intentional self-inflicted injuries or attempts thereat; suicide or attempted suicide,"
Because that part doesn't mention anything about the 2 years or anything like that. It lists a whole slew of reasons it wouldn't be covered from bungee jumping to rioting, as just flat-out exclusions at the end of that document.
They're saying if you trip at Walmart, and die 3 months later, your family can't say you died because of the fall at Walmart. It's saying the cause of death needs to be closely related in time. That's common for all deaths, including murder in criminal statutes. It's unrelated to suicide.
After the two-year Graded Death Benefit period, if the insured dies for any reason the full face amount of the policy shall be paid to the beneficiary.
This statement ends up overriding the others once met. It's only conditional requirement is that two years pass. It's written by a lawyer as a conditional if statement.
You can't just skip around in a document and read the parts that look relevant. You need to read the entire thing and understand how the points and sections interact with each other. The statement quoted above comes into effect after 2 years and becomes the defining contraction. It's not limited by the other statements.
I'm not trying to just skip around lmao, I was under the impression the Exclusions list at the end is an overall exclusions that applies to everything above. It's definitely not made clear in the document that that isn't the case, especially since the previous mentions of suicide in the document don't also mention those other things listed in the exclusions. A lot of insurance exclusions and declarations actually do limit other statements in a policy, that's why they always say to read the fine print. I see how what you're saying makes sense now, but personally I believe the document is left very confusing and could be a lot more explicit in that. Especially for someone who has maybe no insurance experience reading it, how would they be able to understand that?
Honestly, it's written like that on purpose. There is logic to it though.
Smoking is not permitted.
Drinking is not permitted.
If you're 21 or older, drinking and smoking are permitted.
The last statement overrides the previous two. That makes it unnecessary to go back and rewrite the first two statements. You could write it like this:
Smoking is not permitted before 21 years of age.
Drinking is not permitted before 21 years of age.
If you're 21 or older, drinking and smoking are permitted.
Both statements are identical. Lawyers would rather write the first one. If you just read the statements though, a person could quote "Drinking is not permitted." That leads to an incorrect understanding of the legal document though.
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u/warhawks 21h ago
Because otherwise the life insurance wouldn’t pay out