Will Life Insurance Pay Out for Suicide, Drink Driving, or Cancer?

Certain causes of death may affect Life Insurance payouts, so make sure you and your team understand the terms and conditions as well as what’s covered.

Yugi the Giraffe - 13 March 2025

Life Insurance helps to provide financial security for your employees’ dependents if anything were to happen to them. However, there are certain causes of death that may fall outside of the policy, meaning their beneficiaries might not receive a payout.

Death from suicide or drink driving for instance, or some forms of cancer, may not be covered by all Life Insurance policies, so it’s vital that as an employer or HR manager you are aware of the terminology and what is and isn’t covered before signing up. 

Will Life Insurance pay out for suicide?

The suicide clause, or “suicide provision”, is a period during the start of a Life Insurance policy when beneficiaries will not receive the pay out in the case of the policyholder committing suicide.

The suicide clause typically lasts for two years, however, sometimes it can be as little as 12 months, depending on the insurer. When this period is over, the insurers will be likely to pay out in the event of a policyholder’s death, even in the case of suicide.

The suicide clause stops those who are vulnerable committing suicide in order to secure the pay out, while also protecting insurers.

Insurers may refund premiums from the start of the policy up to the suicide of the policyholder. Therefore, even if the death is due to suicide, and during the suicide clause, it is important that the policyholder contacts the Life Insurance provider.

Will Life Insurance pay out for drink driving?

Insurers might not pay out if the policyholder’s death was caused by drink-driving, specifically if they were driving while under the influence. This is because death from drink-driving is considered to be self-inflicted, as it is commonly known that driving while intoxicated can cause accidents, injuries and death.

A Life Insurance provider will not typically pay out for self-inflicted deaths, such as suicide or drink-driving. This is firstly to protect vulnerable people from killing themselves to ensure their beneficiaries get a pay out, and secondly to prevent insurance fraud.

While this might be considered controversial, insurers insist that the risks of drink-driving are public knowledge, meaning that any injuries or death that arise from it are self-inflicted.

Will Life Insurance pay out for cancer?

If the applicant has been completely transparent about their medical history, Life Insurance companies should pay out in the event that the policyholder dies of cancer. 

However, it may be more difficult to take out a Life Insurance policy if someone has already received a cancer diagnosis. The insurer will take down various details of an applicant’s medical history when assessing an application. This can include a cancer diagnosis, what type it is and what stage it’s at.

Many insurance companies will not issue policies for applicants unless they have been cancer-free for two to three years, and premiums are likely to be more expensive.

What is a contestability clause in Life Insurance?

The contestability clause is a period during which the insurer can investigate the policyholder’s death. It commonly runs for the same length of time as the suicide clause.

For example, when a policyholder dies from a disease such as cancer, the insurer can look through their medical records and the autopsy report to check if smoking or substance abuse played a role in the cause of death. Insurers may also be able to interview family and friends. 

If smoking or substance abuse are found, and were not disclosed by the policyholder during their application, the insurer does not have to pay out to their beneficiaries.

This is also applicable to deaths which may have been caused by suicide. Insurers can investigate numerous aspects of the case to help them determine whether the policyholder took their own life, and therefore whether the beneficiaries should receive a pay out.

What is Group Life Insurance?

Group Life Insurance works by covering a group of people—up to thousands of people in an organisation—under one policy, which means significantly less admin compared to insuring people individually.

Your employees will not usually be required to undergo medical examinations or underwriting – so everyone can be covered and company life insurance can be issued immediately. You have the choice of whether your employees are covered for a multiple of their salary (up to 12x base salary) or for a fixed amount.

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Yugi the Giraffe

Yugi is our YuLife mascot. Like all giraffes they've got a big heart – in fact the biggest heart of all land animals.