Does Life Insurance Cover Suicidal Death in Australia?
Please note: If you find any part of this article distressing, support is available. If you need immediate support, you can contact Lifeline on 13 11 14 or visit www.lifeline.org.au. If you are in an emergency or need urgent assistance, please call 000.
A question that’s often asked about Life Insurance is whether it provides coverage in situations where suicide was the cause of death. The answer to this is nuanced – it depends on several variable factors.
Here, we’ll explain everything you need to know about suicide with Life Insurance. If you have coverage with NobleOak, this guide will also provide specific information about our insurance products.
Recent Statistics
According to data from the Australian Institute of Health and Welfare (AIHW), the number of deaths by suicide in Australia has increased since the 1950s – in part, due to population growth.
The most recent data showed that in 2023, there were 2,419 suicide deaths for males (18 per 100,000 population) and 795 for females (5.8 per 100,000 population). The higher rates for men in the year 2023 reflect a trend that has been consistent since 1907, although women are hospitalised for intentional self-harm (with and without suicidal intent) almost twice as frequently as men.
Will Life Insurance Cover Suicide?
Suicide in Life Insurance can be a sensitive and complicated topic. Generally, most Life Insurance policies do not pay a benefit if suicide occurs within the first 1-2 years of taking out or amending the policy – this is known as the ‘suicide clause’. We’ll provide more detail about this in the next section.
If the Life Insurance policy is from NobleOak, a claim will not be approved or paid if:
- The suicide (or suicide attempt) occurs within 13 months after the commencement, reinstatement, or voluntary increase* of the insurance cover – regardless of the policyholder’s mental condition at the time.
- The cause of death falls under a specific exclusion that applies to the policyholder, such as pre-existing medical conditions, lifestyle risk, or other exclusions that were agreed upon when the cover was taken out.
More information about Life Insurance for suicidal death can be found in the NobleOak Product Disclosure Statement.
*If the policyholder voluntarily increases their Life Insurance cover, the newly added amount of cover will be subject to the 13-month suicide exclusion, but the original cover amount will remain unaffected.
Understanding The Suicide Clause
A ‘suicide clause’ is designed to prevent people from taking out large Life Insurance policies with the intent of self-harm to financially benefit their dependants. If suicide occurs within the exclusion period (which, for NobleOak, is 13 months), the insurer will generally deny the claim.
If you replace an existing policy – whether with NobleOak or another insurer – the 13-month suicide Life Insurance exclusion may not apply, as long as the following conditions are met:
- Your previous life cover was active for at least 13 months before switching to the new policy.
- The old policy was officially cancelled after your new cover started.
- Any suicide exclusion period under the previous policy has already expired.
- The new policy amount is equal to or less than the coverage you had before.
- There were no claims made (and there are no claims yet to be made) under your previous cover.
If you increase your cover amount, the suicide exclusion will still apply – but only to the increased portion. In the event of war or invasion, your cover may be subject to an exclusion if you don’t pay the increased premium.
As always you should check the Product Disclosure Statement of any policy and consult with your financial adviser (if applicable) as policies may vary.
Can You Get Life Insurance If You Have Attempted Suicide?
There isn’t a straightforward answer to this question because each case is assessed individually. When you apply for a Life Insurance policy with NobleOak, you’ll be asked to answer some questions so we can learn about your medical history and health challenges. This is so we can tailor your coverage to suit your personal situation and ensure you are clear on what you are covered for and whether there will be any loadings (additional costs) or exclusions (things you are not covered for). NobleOak do not enforce blanket exclusions, but some other life insurers do.
You can still apply for Life Insurance with a suicide attempt in your history, it’s just important that you’re honest and transparent. Our team of underwriters will assess your application based on a number of factors including your current situation, how long ago the suicide attempt was, and whether there were multiple attempts.
In cases where the policy is approved, it might contain some exclusions, or incur slightly higher premiums. If you want to find out more, please get in touch with our team – they can help you get your application underway, and answer any questions you might have.
How To Apply For Life Insurance After A Suicide Attempt
Life Insurance for suicide attempt survivors is possible – you just need to make honest disclosures about your history and current circumstances during the application process.
To make an application with NobleOak, simply follow these steps:
- Start a quote: Use our online quote tool or call us on 1300 041 494 to get your application started.
- Complete an application: The next step is to fill out an application form, which includes providing details about your health, occupation, and lifestyle.
- Undergo a medical assessment (if required): You may need to complete a short medical questionnaire or undergo a health check depending on your medical history.
- Policy approval: Once we assess your application and medical information, we’ll determine your eligibility and confirm your final premium and coverage details.
What Questions Can You Expect During the Life Insurance Application Process?
If you talk to NobleOak about Life Insurance, questions around suicide and mental health more generally, will be handled with sensitivity and discretion. Our team is here to give you the right information and help you find the right coverage to suit your needs.
During the application process, we will ask about your past medical history – this will include some questions about your mental health. These questions can be completed either online or with one of our experienced agents who will ensure you feel comfortable with the process.
Where To Get Help
If you’re in an emergency, call Triple Zero (000). Help is available if you need to speak to someone right now about your mental health: call Lifeline on 13 11 14 or visit www.lifeline.org.au.
Other mental health support services include Beyond Blue and Mental Health Australia.
More information about Life Insurance and suicide can be found here:
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Use our online quote tool to learn more about your insurance options, or call us today on 1300 041 494.
Any financial product advice is general in nature only and does not take into account your individual circumstances, objectives, financial situation, or needs. Before acting on it, please consider the appropriateness of the information, having regard to those factors. Any third party websites or tools referred to are subject to their own terms and conditions and NobleOak Life Limited makes no representation or warranty as to any information on those websites. Persons deciding whether to acquire or continue to hold life insurance issued by NobleOak Life Limited should consider the relevant Product Disclosure Statement and Target Market Determination for the product. NobleOak Life Limited ABN 85 087 648 708 AFSL 247302.