Suicide represents a significant health issue in Australia. According to the 2016 report by the World Health Organisation, suicide was the leading cause of death among Australians aged 15 to 44. This alarming statistic has prompted numerous questions about life insurance policies and whether they cover deaths resulting from suicide.
In Australia, life insurance policies commonly include coverage for suicide, but typically the policy must be active for more than 13 months from the issue date. It’s important to check your PDS to verify this.
Life Insurance May Include Suicide Coverage
There is a widespread misconception that Australian life insurance policies do not cover suicide. However, many do provide coverage after the policy has been in effect for over 13 months. There are exceptions; some Direct or Group policies might exclude suicide for a longer duration or entirely.
It’s crucial to review your Policy Disclosure Statement (PDS) for any exclusions. For instance, NMRA will not pay out life cover for their Fast Track Cover product within the first five years from the cover Commencement Date if death or terminal illness is directly or indirectly caused by suicide or intentional self-injury.
Make sure to confirm with your insurance provider exactly what your life insurance policy excludes and when any exclusion period may end.
If you need assistance finding a policy with comprehensive coverage, contact us, and our expert consultants will give you all the necessary information to make an informed choice.
Let us be clear. If you’re reading this because you’re considering ending your life so your loved ones can claim your death benefit, you’re making the wrong choice. You are infinitely more valuable alive than dead. Call Lifeline on 13 11 14 if you’re facing personal crises. Seeking help is a sign of strength, not weakness.
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Author Profile: Jeffrey Liu, JP, is the founder and principal adviser of Hippo Insurance (aka: Hippo Wealth), with a deep expertise in wealth protection. His extensive experience includes roles in the wealth management divisions of Westpac, ANZ, and a local multi-family office. As the host of “Riches Talk,” a podcast dedicated to cultivating personal and business growth, Jeffrey has established himself as a thought leader in developing life riches. His insights have been featured on SBS, The Australian, and Channel 7. Notably, he was a semi-finalist on Australia’s Got Talent in 2010. Learn more at http://www.hippoinsurance.com.au
