I had a discussion this week after a tired badminton session with few friends of mine and surprisingly they do not aware that suicide is insured as well by insurance. So, I just share it here with you guys.
As far as I know, suicide is covered by your life insurance. However it is only valid after 1 year you buy your insurance. This basically means that if you suicide within a year, you're not insured! lol :) Having said so, some insurance policies may vary (e.g. 2 years), so you need to check with your insurance agent or read the policy carefully.
Why it is not covered within a year?
I guess you already know the answer. This is to avoid people misused the original intention of insurance.Why 1 year? I guess that is due to statistical reason which usually people won't plan their suicide more than a year. So now you know the loophole. If you want to get the money, plan your suicide 1 year in advance. If many people are doing what you're doing, then guess what? The insurance company will then increases suicide clause from 1 year to 2 years. It is all about statistic for a insurance company so technically they will never lost! :)
Any other exception?
The only one thing is not covered by life insurance is death due to natural disaster (e.g earthquake) unless you buy specific insurance which is meant for natural disasters.
I also brought a very interesting hypothetical example during the discussion: while you suicide during the earthquake, are you being covered? I do not really sure but common sense tell me the answer is Yes and No. Yes, if the earthquake do not cause a lot of death and No, if the earthquake is the serious one. I imagine that if the earthquake causes a lot of death, can we still able to tell whether your death is caused by suicide? Unlikely right?
P/S: I hope you do not really want to plan for your suicide in 1-year advance. :)