Does Term Insurance Cover Suicide?

Term insurance is among the most sought-after insurance products among UAE residents, owing to its numerous benefits and comprehensive protection features. Serving as the financial shield that looks after the loved ones in the event of the policyholder's demise, term insurance plays a pivotal role in many families' financial planning in the Emirates.

However, amidst its rising popularity, a question often arises – is suicide covered in term insurance? Many UAE residents grapple with this query, seeking clarity on this sensitive aspect of the policy. If you, too, have pondered upon this, you're in the right place!

In the following article, we will dive deep into this topic to answer this pressing question and provide all the pertinent details.

Is Suicide Covered in Term Insurance?

Let’s get to the answer to this question through an example.

Consider Mr. Ahmed, who was an ambitious employee and always strived for the best for his family. Understanding the unpredictability of life, he had wisely invested in term insurance, a decision applauded by many. 

Tragically, a few years into the policy, he passed away, leaving behind dependents in a state of profound grief and a cloud of uncertainty. Among the many questions they grappled with was a particularly pressing one: Does the term insurance cover suicide?

The answer, as with many aspects of insurance, hinges on the specifics of the insurer and the policy details. Broadly speaking, most insurance companies have what's referred to as a 'waiting period' or 'exclusion period' for suicide claims. This period typically ranges from 1 to 2 years from the policy's commencement. 

If the policyholder — in this case, Mr. Ahmed — were to pass away due to suicide within this defined period, his insurance provider might not pay out the death benefit. However, once this period has lapsed, many insurers will cover death due to suicide subject to specific conditions and policy stipulations.

As we emphasised earlier, it's crucial to note that insurance policies aren't universally standardised. Some insurance providers may altogether exclude suicide from their coverage, regardless of how long the policy has been in effect. 

Given the gravity of such a clause and its implications for beneficiaries, it's of paramount importance to be well-informed before committing to a policy. Prospective policyholders are strongly advised to read the fine print and, more specifically, understand the policy's conditions regarding suicide. This ensures that there are no unwelcome surprises for the grieving family in their time of need.

In Mr. Ahmed's case, whether his family will receive the death benefit from the term insurance largely rests on these factors: the specifics of his policy, the time elapsed since its inception, and the conditions under which the policy covers cases of suicide. For families and individuals alike, this highlights the importance of clarity and knowledge when entering into insurance agreements.

List of Term Insurance Plans with Suicide Coverage

Let’s take a look at some of the top term insurance plans in the UAE and understand whether they provide suicide coverage - 

Watania Takaful – Pure Protection Plan

• The Pure Protection Plan from Watania Takaful offers a life cover of AED 1,000,000 and has a policy term spanning 10 years.
• This plan stands out due to its worldwide coverage as well as specific benefits like Covid-19 coverage and coverage for pre-existing diseases.
• It is structured as a level-term plan.
• It’s important to note that death resulting from suicide within the first year of the policy's commencement date isn't covered. However, any time thereafter, suicide is covered.

Orient Insurance – International Term Plan

• The International Term Plan is another level term plan.
• It assures a sum insured payout in the event of the policyholder's death with a life coverage of AED 1,000,000.
• While the plan has an exclusion for claims related to attempted suicide, this clause is waived for the death benefit if the suicide takes place after 13 months from the date of commencement or reinstatement.

Sukoon Insurance – DigiTerm

• DigiTerm provides life coverage of AED 1,000,000 and does not feature a maturity bonus period.
• The plan boasts worldwide coverage, with a sum assured in case of death due to an accident from day one being AED 1,000,000 and in case of sickness, the amount remains the same.
• It is crucial to note that the insurance contract becomes void if suicide occurs within two years from the date of commencement of risk or the last reinstatement of the policy. Claims related to such incidents will not be entertained by Sukoon.

Takaful Emarat – Fixed Term

• The Fixed Term is presented as a level-term plan.
• Takaful Emarat is renowned in the UAE for its term insurance plans as well as provisions, boasting an impressive claim settlement ratio of 98.2%.
• Suicide is covered under this plan but only after one year from the policy's commencement date.

HAYAH Insurance – Term Life Protect

• The Term Life Protect plan by HAYAH provides a medical coverage amount of AED 1,000,000 with a policy term of 10 years.
• For potential policyholders, it's worth noting that this particular plan does not provide any coverage for suicide.

Zurich Insurance – International Term Assurance

• This plan offers a life cover of AED 1,000,000.
• The requirement for a medical check-up depends on your age and health conditions as well as your chosen cover.
• It provides global coverage to its policyholders.
• This policy has specific conditions regarding suicide. If the insured individual commits suicide within a) 12 months of the commencement date of the policy, b) 12 months from the date of reinstatement, or c) 12 months following an increase in the sum insured, the death won't be covered.

Important: While these summaries provide an overview of each plan's stance on suicide coverage, applicants are always advised to thoroughly read and understand the complete policy documents before making a decision.

Wrapping Up

Navigating the world of term insurance in the UAE, residents are often confronted with a pressing concern: does life insurance cover suicidal death? The sobering reality of suicide makes it an aspect that can't be overlooked when considering term insurance policies. 

While some insurance plans do provide a safety net by covering suicides, this is often with the caveat of a waiting period. These stipulations, which can vary from one insurer to another, underscore the importance of understanding the nuances of the term insurance one opts for. 

A thorough comprehension of each policy ensures that beneficiaries aren't faced with unexpected challenges during already distressing times. In sum, while there are life insurance plans that cover suicide, the specifics of coverage, waiting periods, and other conditions make it imperative for potential policyholders to be well informed. By doing so, they ensure that the intent behind acquiring life insurance—offering protection and support to loved ones—is truly met.