What is the implication of committing suicide after buying a life insurance policy?

When an individual purchases a life insurance policy, there is typically a contestability period, which is a specified time frame during which the insurer has the right to investigate and potentially deny a claim if certain conditions are met. One such condition often involves suicide.

If the insured individual commits suicide within this contestability period, the insurance company may not be obligated to pay out the death benefit, leading to the situation where the policy may not cover suicide within that designated timeframe. However, if the suicide occurs after this period, the beneficiary would likely receive the full payout as per the terms of the policy, reflecting the intention of the coverage.

This context helps to clarify why the implication of suicide shortly after buying a life insurance policy can create ambiguity regarding coverage and benefits. The specific provision varies by state and individual policy terms, but the general practice often involves having limitations related to suicide claims during those initial months or years.