Does life insurance pay out in the event of suicide? Clear facts for the worst-case scenario
07.06.25
5
Minutes
Katrin Straub
Managing Director at nextsure
The death of a person is always a heavy blow, especially when it is suicide. Many bereaved relatives then ask themselves: does life insurance pay out in the event of suicide? This article sheds light on the complex regulations and gives you reassurance.
The topic in brief and concise terms
Life insurance policies usually pay out in the event of suicide if the policy has been in force for more than three years (§ 161 VVG).
Within the first three years, payment is usually made only if the suicide occurred in a state in which free will was impaired; otherwise, the surrender value is often refunded.
The burden of proof for a pathological disorder lies with the claimant, while the burden of proof for the suicide itself lies with the insurer.
Quick overview: When does the insurance pay out in the event of suicide?
The question of the insurer's obligation to pay under a term life insurance policy or endowment life insurance policy in the event of suicide is clearly regulated. Since a change in the law in 2008, the situation for surviving dependants has become more transparent. A three-year period from the conclusion of the contract is often decisive.
If the insured person dies by suicide after this period has elapsed, the insurer will generally pay the agreed sum. During the first three years after the policy is signed, the situation is more complex. This rule is intended to prevent abuse, for example taking out insurance with suicidal intent.
The Three-Year Time Limit: Understanding the Legal Basis under Section 161 VVG
The Insurance Contract Act (VVG) forms the legal basis for the obligation to pay benefits. Section 161 VVG is the central provision here, governing payment in the event of suicide. It states that the insurer is not obliged to pay benefits if the insured person deliberately took their own life before the expiry of three years after the insurance contract was concluded. This period is also referred to as a waiting period. For contracts concluded before 1 January 2008, older rules may still apply in some cases.
The three-year period begins on the date the contract is concluded, not only from the insurance inception stated in the policy or the first premium payment. Some insurers, such as Signal Iduna, even shorten this period in their terms to two years. An extension of the statutory three-year period is only possible by individual agreement.
If the sum insured is increased during the term of the contract, the three-year period may start again for the increased amount. This is because the increase may be treated as a partial new contract. Always clarify such details directly with your insurer to avoid later uncertainty.
Exceptions to the waiting period: When does the insurer pay out despite suicide within three years?
Even if the suicide occurs within the first three years after conclusion of the contract, there is an important exception. The insurer must still pay if the act was committed „in a state of pathological disturbance of mental activity excluding free will“ (§ 161 para. 1 sentence 2 VVG). This may be the case, for example, in severe depression or in a state of complete intoxication.
The burden of proof for the existence of this pathological disturbance lies with the claimants, i.e. usually the bereaved. This often requires psychiatric reports or other medical evidence. It is a difficult piece of evidence that is examined closely in each individual case. For example, the Mönchengladbach Regional Court affirmed insurance cover in a case of endogenous depression.
If, on the other hand, the insurer asserts that it was a suicide in order to refuse payment, the burden of proof for the self-inflicted death lies with the insurer. This proof requires a degree of certainty that is usable for practical life. Mere prima facie evidence is often not sufficient.
Practical cases and typical scenarios: What really happens?
Theory is one thing, but practice is often more complex. Insurers examine each case of suicide very carefully, especially within the waiting period. A common scenario is a refusal of benefits with reference to the three-year period. Here is a fictional example: Mr Müller takes out a term life insurance policy on 1 March 2022 and dies by suicide on 1 February 2025. As the death occurs within the three-year period, the sum insured would initially not be paid out.
What happens if the insurer does not pay within the period? In most cases, the insurance’s so-called surrender value is then paid out. This is the sum of the premiums paid up to that point, less certain costs, including the share of surplus in accordance with Section 161(3) of the Insurance Contract Act (VVG). This at least provides partial financial compensation.
The exact definition of “intentional suicide” may be disputed in individual cases. Here are some examples of how courts have ruled in the past:
In the case of a contact gunshot wound to the head, intent is often assumed.
A farewell note in a car after a rear-end collision can serve as evidence of suicide.
In cases of hanging without third-party involvement, suicide is usually presumed.
Taking an overdose of seventy sleeping tablets was classified as intentional suicide.
These examples show how closely the circumstances are examined. A lack of motive for suicide can strengthen the position of the surviving dependants.
Expert insight: Current rulings and drafting tips
Case law on the topic of “does life insurance pay out in the event of suicide” is constantly evolving. Courts often have to assess complex factual situations, especially when it comes to proving a limited capacity for self-determination. Our expert tip: document all circumstances carefully and seek advice from specialists at an early stage. The General Terms and Conditions for term life insurance issued by the German Insurance Association (GDV) implement the requirements of Section 161 VVG.
A key aspect is transparency when the contract is concluded. If pre-existing conditions, especially of a psychological nature, are not stated correctly in the health questions, the insurer may later contest the contract. This can lead to a refusal to pay even years after the contract was taken out, regardless of the issue of suicide. Honesty in the application questions is therefore essential for valid insurance cover.
Please note the following drafting tips:
Check the insurance conditions carefully for the length of the waiting period; some insurers offer shorter periods than the statutory three years.
If you increase the sum insured, clarify whether and how this affects the waiting period for the increased portion.
Keep all contractual documents and correspondence with the insurer safe. This can be crucial in the event of a claim.
Find out about the exact types of life insurance and their specific clauses.
If in doubt, professional advice from a solicitor specialising in insurance law or a consumer advice centre is advisable should any discrepancies arise with the insurer.
Support for those affected: More than just financial considerations
The loss of a person through suicide is an immense burden. In addition to insurance-related questions, bereaved relatives often need psychological support. Many insurers and organisations point to sources of help. The telephone counselling service, for example, can be reached free of charge 24/7 on 0800 / 111 0 111 and 0800 / 111 0 222.
Even though financial protection through a term life insurance policy is important, the human tragedy takes centre stage. Do not hesitate to seek professional help. Organisations such as AGUS e.V. (relatives bereaved by suicide) offer specific support for bereaved relatives. There are numerous counselling centres and self-help groups across Germany.
Clarifying the insurance benefit can take some time, especially if the cause of death is not immediately clear or reports are required. Prompt notification of the death to the insurer, usually within two to three days, is important. As a rule, the insurance policy and death certificate are required.
If the worst happens and, as a beneficiary, you claim benefits from a life insurance policy following a suicide, a structured approach is important. Report the death to the insurer immediately; a period of 48 to 72 hours is often specified. Submit all required documents, such as the policy document and the official death certificate, in full. The insurer will review the case, which can take some time, especially in the case of deaths within the three-year waiting period.
If the insurer rejects the benefit, have the reasoning carefully reviewed. If there are doubts about the lawfulness of the rejection, consult a specialist solicitor for insurance law. They can assess the prospects of success of an objection or a lawsuit. A life insurance policy often provides important financial support. It is your right to make full use of the contractual terms and statutory provisions. Also remember to keep the beneficiary designation for the life insurance policy up to date.
More useful links
Wikipedia offers a comprehensive overview of life insurance, particularly the exclusion of benefits in the event of suicide.
The Federal Statistical Office (Destatis) provides current statistics on causes of death in Germany, including detailed data on suicides.
The National Suicide Prevention Germany initiative provides an overview of support services and information on suicide prevention.
The German Medical Journal publishes specialist articles on suicide prevention in Germany that highlight challenges and perspectives.
The Telephone Counselling Service offers free, confidential advice around the clock for people in crisis situations.
FAQ
Does my term life insurance pay out in the event of suicide?
Yes, in general, term life insurance pays out in the event of suicide if more than three years have passed since the policy was taken out. Within this period, there are exceptions, for example if the person lacked free will at the time of the act.
What is the suicide clause or self-inflicted death clause?
The suicide clause, enshrined in law in Section 161 VVG, governs the insurer’s obligation to pay in the event of suicide. It usually includes a three-year waiting period from the conclusion of the contract.
Do I get my money back if the insurance doesn’t pay out because of suicide during the waiting period?
Yes, usually the insurer pays back the surrender value of the policy or the sum of the premiums paid in (less costs) if the obligation to pay benefits lapses due to suicide within the waiting period.
What role does depression play in the payout?
A severe depression may be regarded as a pathological disturbance of mental activity that precludes the free exercise of the will. In this case, the insurer may also be obliged to pay in the event of suicide during the waiting period. Proof must be provided by the dependants.
What does "a state excluding free determination of will" mean?
This means that, at the time of the suicide, the person was unable, due to a pathological mental disorder (e.g. severe depression, psychosis, strong intoxication), to form their will freely and without influence and to act accordingly.
Where can relatives find help and advice?
Alongside the telephone counselling service (e.g. 0800 / 111 0 111), there are specialised organisations such as AGUS e.V. for relatives bereaved by suicide. For legal questions, specialist lawyers for insurance law or consumer advice centres can help.
