Suicide – New Jersey

The loss of a loved one to suicide is one of the most devastating experiences a family can face. This grief can be intensified if a life insurance company refuses to pay the death benefit due to a suicide exclusion in the policy. The Law Offices of Eric Dinnocenzo are life insurance denial attorneys who have successfully handled a number of these cases.

What is a suicide exclusion in a New Jersey life insurance policy?

A suicide exclusion is a provision that denies the payout of a death benefit if the insured takes their own life. In New Jersey, this exclusion applies only during the first two years of the policy. If suicide occurs after this period, the death benefit must be paid.

These exclusions aim to discourage individuals from obtaining life insurance with the intent of providing financial gain for their families upon their planned death. This is rooted in the belief that it’s detrimental for society to create incentives for suicide.

Are there exceptions to the suicide exclusion in New Jersey?

Yes, beneficiaries have recourse even if a life insurance claim is denied based on a suicide clause.

In many instances, claims are wrongly denied despite clear evidence that the insured was grappling with severe depression or mental health issues and did not purchase the life insurance policy with an intent to commit suicide. In such cases, it may be possible to claim the death benefit, as the insured’s mental health condition significantly impacted their judgment.

For example, the Third Circuit Court of Appeals has noted that a death benefit may be owed if the insured did not intend for their actions to lead to death or if their mental illness was so profound that they were unaware of the implications of their actions.

Additionally, if the insured acted on an overwhelming impulse that prevented them from controlling their actions, the death benefit should also be paid.

There may also be ambiguity surrounding whether the insured intentionally took their life. If it cannot be conclusively determined that the death was a suicide rather than an accident, the insurer is obligated to pay the death benefit. Typically, the burden of proof lies with the insurer, as the law operates under a presumption against suicide.

These situations can become more complex depending on the type of life insurance policy involved, as different regulations may apply to group plans versus individually purchased policies.

The Law Offices of Eric Dinnocenzo has experience with New Jersey life insurance cases involving suicide exclusions. For a free consultation, you can contact us at (212) 933-1675.