Does life insurance pay out for suicidal death in South Africa?
08 NOVEMBER 2023
The topic of insurance payouts in cases of suicide is a delicate and complex one, raising questions about policies, ethics, and mental health awareness. In South Africa, as in many other countries, insurance companies approach suicide claims with specific guidelines and exclusion periods.
Understanding Insurance Policies Regarding Suicide
Insurance policies, including life insurance, funeral cover and other types of personal insurance, could pay out for unnatural death (suicide) after a certain exclusion period has passed. This exclusion period is a specific duration from the policy's start date during which the insured person's suicide is not covered. The purpose of this waiting period is to mitigate the risk of individuals obtaining insurance with the intention of self-harm shortly after taking out the policy.
RCS, for example, sees their personal accident policy list suicide as an exclusion on the policy, however, their funeral cover will still pay out despite suicide – with a waiting period of 12 months required for unnatural death. Like most insurers, RCS has an exclusion period concerning suicide, or depending on the type of cover, may list it as an exclusion.
During an exclusion period, if the insured person dies by suicide, the policy may not pay out, or the benefit may be impacted. However, after the exclusion period has passed, insurance companies may honour suicide claims, provided all other policy requirements have been met.
It is equally crucial for policyholders to provide accurate and honest information about their medical history and mental health status during the application process. Transparency is key to ensuring that policies are valid and that individuals are protected under the terms of their coverage.
Making Informed Choices
Individuals seeking insurance coverage must carefully review policy terms, including those related to suicide. Variations exist between policies and providers, making it essential for prospective policyholders to understand these details.
The Importance of Mental Health Awareness
It's crucial to approach the topic of suicide and insurance with sensitivity and understanding. Mental health issues, including depression and suicidal thoughts, affect many individuals globally. The importance of mental health awareness and support cannot be overstated.
Support Systems and Prevention Initiatives
In South Africa, various organisations, such as the South African Depression and Anxiety Group (SADAG), focus on mental health support, awareness, and suicide prevention. These organisations play a vital role in providing assistance to individuals in crisis and promoting mental health education. It is organisations such as these that you should be visiting if you are going through a tough time in regard to your mental health. It is extremely important to note that financial coverage will not ever be a replacement for you.
The topic of insurance payouts in cases of suicide underscores the intricate interplay between the insurance industry, mental health challenges, and societal support systems. Insurance companies in South Africa follow standard practices regarding suicide claims, implementing exclusion periods before honouring such claims.
In this context, education and awareness are essential. Both insurers and the community at large must work together to reduce the stigma around mental health issues and promote understanding.
Help is available - Speak to someone today
Suicide Crises Line: 0800 567 567
Available 24 hours. All 11 official languages of South Africa are supported.