Suicide is never a topic that anyone wants to acknowledge could ever be a real concern in their own immediate family. However, statistics show that in 2013, more than 41,000 deaths were suicide related. Losing a loved one to suicide does happen, and thinking that life insurance will not payout after such a grieving event can be an even more trying situation. While many insurance companies hold what is often referred to as a suicide clause, most life insurance customers have no idea as to exactly what this means. Here are a few of the biggest misconceptions when it comes to life insurance and suicide, and the real facts you should take note of as a customer.

Misconception: The suicide clause means that a suicide is never covered by life insurance.

Fact: The suicide clause actually does not mean that the loss of a covered individual would never be covered. Instead, the suicide clause usually states that the death would not be covered if it were to take place within the first two years after the onset of the policy. Therefore, if a policy holder has carried the policy for more than two years, there is a good chance that the benefits would be paid out just the same as they would for any other cause of death.

Misconception: Life insurance companies commonly claim suicide to get out of paying beneficiaries.

Fact: There are instances when it is not clear whether the death was a result of an intentional act or not. However, life insurance companies will not try to get out of paying beneficiaries by claiming a loss was suicide unless there is some reason to believe that this could be the case. For example, if your loved one was dealing with a terminal illness, severely depressed, and died in a suspicious sudden accident, the insurance company may look closer at the true cause of death. Even if it is determined that there is a high possibility that the death was an intentional act, the life insurance company will usually still pay, but there may be differences in the settlement amount.

The bottom line is, life insurance is a valuable asset regardless of the cause of death. If you would like to know more about what will and will not be covered with your own insurance policy or the policy of your family member, be sure to openly talk to a company like Advantage Insurance Agency, Inc for more information.