Does Guaranteed Issue Life Insurance Cover Suicide?
Updated October 8, 2026
Coverage guide
Does Guaranteed Issue Life Insurance Cover Suicide?
Yes, but only after the suicide exclusion period ends, which is usually two years from the policy start date (one year in a few states). If it happens sooner, the family does not get the death benefit. The insurer returns the premiums paid instead. Exact terms vary by carrier and state.
What the suicide clause means for a guaranteed issue policy
Almost every individual life insurance policy has a suicide clause. It says that if the insured dies by suicide within the first one or two years, the company will not pay the death benefit. After that window closes, the policy pays the same as it would for any other cause of death.
Guaranteed issue policies work this way too. This guide explains how the clause lines up with the 2-year waiting period, what the family receives if a death falls inside it, which states shorten the period, and what to check in your policy before you sign. If this topic is close to home for you right now, there is a note on support at the end of the first section below.
How the suicide exclusion works
The clause is a standard provision, not a trick. Insurers include it so that a policy cannot be bought and used within weeks as a way to pay out.
In most states the exclusion lasts the first two years after the policy takes effect. Colorado, Missouri and North Dakota use one year, according to the Legal Information Institute at Cornell Law School and NerdWallet. Carrier disclosures sometimes list a slightly different set of one-year states, so your own policy form is the document that controls. Look for the heading “Suicide” in the policy contract.
If death by suicide happens inside the exclusion period, the insurer does not pay the death benefit. It typically refunds the premiums paid, less any outstanding policy loan. A sample United of Omaha policy form states this in plain terms: no death benefit, and all premiums paid are returned, minus any loan. Mutual of Omaha’s general disclosures add that the exclusion applies whether the person was sane or insane.
Once the exclusion period has passed, the clause no longer applies. The beneficiary files a normal claim. The insurer will still review the cause of death and the claim paperwork, but suicide is no longer a reason to deny it.
How the suicide clause and the waiting period overlap
Guaranteed issue policies already have a waiting period, commonly two years (it varies by carrier). During that time, a death from natural causes pays back the premiums, plus interest or a set percentage, rather than the full benefit. Mutual of Omaha’s guaranteed whole life page, for example, says beneficiaries receive all premiums paid plus 10 percent if the insured dies of natural causes in the first two years, and the full benefit after that.
The suicide clause usually runs over the same two years, so the two rules tend to line up. The difference is in what the family gets back. Here is how the first two years generally work, with the caveat that each policy form sets its own wording:
Natural death
Premiums returned plus interest or a stated percentage. No full death benefit until the waiting period ends.
Accidental death
Some carriers, including Mutual of Omaha on its guaranteed whole life page, pay the full benefit from day one. Suicide is not treated as an accident.
Suicide
No death benefit. The premiums paid are typically refunded, less any loan. This is usually plain premiums, without the added interest.
Notice that the refund for suicide may be smaller than the refund for natural death, because the added interest or percentage often does not apply. Read the exact wording. It is one of the few places where two guaranteed issue policies can differ in a way that matters to a family.
What pays, and when: a side-by-side view
This table is a general pattern drawn from carrier disclosures. It is illustrative, not a promise about any one policy.
| Cause of death | Within the first 2 years (typical) | After the exclusion and waiting period |
|---|---|---|
| Natural causes (illness) | Premiums returned, plus interest or a set percentage | Full death benefit |
| Accident | Full benefit at some carriers; varies | Full death benefit |
| Suicide | No death benefit; premiums returned, less any loan | Full death benefit |
| Suicide in a one-year state | Exclusion ends after year one under state law | Full death benefit |
One more practical point: any unpaid policy loan is subtracted from whatever the company pays. Guaranteed issue whole life policies can build a small cash value, so a loan is possible. Borrowing against a policy this small is rarely a good idea for exactly this reason.
Before you settle for guaranteed issue: the coverage ladder
Guaranteed issue is the last rung, not the first. It costs the most per dollar of coverage and carries the waiting period. If the real worry behind this question is a mental health history, there may be better options.
Many people with depression, anxiety or past treatment assume they cannot qualify for anything but guaranteed issue. That is often wrong. Whether a company will approve you usually depends on the condition, how long ago it was treated, whether you were hospitalized, and what the application asks. Some simplified issue applications ask about recent psychiatric hospitalization or recent attempts; others do not. A broker who works with many carriers can tell you which questions each one asks before you apply, so a “yes” on one form does not close every door.
| Coverage type | Health questions | Medical exam | Waiting period | Best for |
|---|---|---|---|---|
| Level (fully underwritten) | Detailed, plus records | Often yes | None | Stable health, lowest cost |
| Simplified issue | A few short questions | No | Usually none | Managed conditions |
| Graded benefit | Some questions | No | Usually 2 to 3 years, varies | Conditions that block simplified |
| Guaranteed issue | None | No | Usually 2 years, varies | Declined elsewhere |
See our pages on simplified issue and life insurance with a mental health history to compare before you commit. The honest answer for many readers is that a simplified issue policy, if you qualify, starts paying sooner and costs less.
What a broker watches for
These are the points that come up in real cases and rarely appear on a carrier’s brochure.
- Replacing a policy restarts the clock. A new policy generally has its own suicide and waiting periods that begin on its effective date. Do not cancel a policy that has already passed two years to buy a new one without checking this first. Our guide on what happens if you stop paying covers the cost of walking away.
- Check the state. The period can be shorter where you live. The policy form issued in your state is the one that counts.
- Read for the refund wording. Is it premiums only, premiums plus interest, or premiums plus a percentage? It differs from one form to the next.
- Keep paying on time. A lapse and reinstatement can raise questions about when the clock started. Ask the carrier in writing how reinstatement affects the exclusion period.
- Name your beneficiary and keep the policy where family can find it. Families who know a policy exists file claims faster. The steps are in our guide to filing a life insurance claim.
Common mistakes families and buyers make
- Assuming “guaranteed” means every cause of death is paid from day one. The word describes acceptance, not the payout. The waiting period and the suicide clause still apply.
- Assuming a refund equals the benefit. A refund of premiums is typically a small fraction of the face amount. A person paying 40 dollars a month for 18 months has paid 720 dollars (an illustrative figure, not a quote).
- Buying too much coverage too soon. A smaller face amount means smaller premiums, which means a smaller loss if something goes wrong in the first two years. If you only need to cover a funeral, our final expense guide helps you size it.
- Not telling the family the policy exists. A policy nobody knows about does not get claimed.
- Skipping the policy form. The sales brochure is a summary. The contract is what a claims examiner follows.
What this means for cost
The suicide clause does not change your premium. Guaranteed issue rates depend on age, sex, coverage amount and carrier, and they are higher than simplified issue because the insurer accepts everyone. What the clause changes is the risk profile of the first two years, which is already priced into the product. We do not publish a rate table here because any figures we could show would depend on your age, state and chosen amount. The free quote tool shows real numbers for your situation in about a minute.
Common questions
Does guaranteed issue life insurance cover suicide?
Yes, after the exclusion period ends. That period is usually two years from the effective date and is one year in some states. Inside the period, the insurer typically refunds premiums instead of paying the death benefit.
Is the suicide exclusion different on a guaranteed issue policy than on other life insurance?
The clause is a standard provision on most individual policies, so it is not unique to guaranteed issue. What is different is that guaranteed issue also has a waiting period for natural death, so the first two years are limited in more than one way.
What does my family get if death by suicide happens in the first two years?
Typically, the premiums you paid, less any outstanding loan. The full death benefit is not paid. Check your policy’s “Suicide” section for the exact wording, since some forms add interest and some do not.
Which states have a one-year suicide clause?
Colorado, Missouri and North Dakota are commonly listed as one-year states. Some carrier disclosures list a different set, so confirm with the policy form issued in your state.
Does accidental death coverage pay for suicide?
No. Accidental death benefits generally do not apply to suicide. Some guaranteed issue policies do pay the full benefit for an accident in the first two years, but suicide is handled under the separate suicide clause.
Can the insurer deny a claim for suicide after two years?
Not on the basis of suicide once the exclusion period has passed. The company will still verify the claim details, such as the cause of death and the premiums being current.
If I replace my policy, does the two-year clock start over?
Generally yes. A new policy has its own periods that start on its own effective date. Ask your broker to confirm in writing before you cancel anything.
Is there a life insurance option with no suicide clause?
Individual policies almost always include one. Some employer group policies may not, and military SGLI coverage has none, according to Western and Southern. For an individual policy, expect a clause.
Sources
- Cornell Law School, Legal Information Institute: Suicide clause
- NerdWallet: Does Life Insurance Cover Suicide? (updated January 26, 2026)
- Mutual of Omaha: Guaranteed Whole Life Insurance disclosures
- United of Omaha sample policy form (suicide and incontestability provisions)
- Western and Southern: What is the Life Insurance Suicide Exclusion?
- 988 Suicide and Crisis Lifeline
The bottom line
Guaranteed issue life insurance does cover suicide, but only once the exclusion period ends, usually two years in, and the first two years are already restricted for natural death. If you are buying for yourself, try simplified issue first. If a guaranteed issue policy is the right fit, read the suicide and refund wording before you sign, and keep it for the long run.
Ready to compare? Get a free quote or call (215) 999-3168 and ask about options before guaranteed issue.
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