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Disclaimer: Suicide or self-harm is a sensitive topic. Ditto Insurance is in no way trying to lighten the severity and gravity of the matter. Our task is to offer the grieving families credible information that can help them financially, considering the difficult situation that they are in. 

As an insurance expert platform, we have a wholesome understanding of how financial products like term insurance policies can act as a savior in case of the unfortunate passing of the family's primary breadwinner. The sum assured so availed can help a nominee and his/her family meet their various life goals without having to overcome financial hurdles. Given the affordability of term insurance premiums, the customization opportunities, and the sizable coverage offered, it’s obvious how term insurance policies have grown to be a popular product as a step toward smart financial planning.

But when the untimely death of a loved one is by suicide, talking about finances becomes an even more unsavory subject for their loved ones to address. Even so, it is an important conversation as the assurance of a strong financial pool, while not a solution to their emotional distress, could make a real difference in their lives moving forward.

The “best” plan can vary based on your individual needs, so it’s critical to do personal research or, better yet, speak to one of Ditto’s IRDAI-certified experts and get solid insurance advice. Book a call today to enjoy the ultimate policy-buying experience.

Overview

In this article, we are taking into account the sensitivity of suicides and the often-avoided discussion about the financial outcomes of the untimely death of an earning member of the family. Read on to find out how, as an expert insurance advisory platform, we can guide you through all the red tape involved. 

Does Term Insurance Cover Suicidal Death?

A straightforward answer: Yes, term insurance policies cover suicidal death. 

However, considering the severity and sensitivity of the topic, the IRDAI and, hence, term insurance providers have quite a stoic standpoint about offering coverage to deaths caused by suicide. 

Hence, there are some terms and conditions associated with this coverage. Here’s a quick look at these regulations:

IRDAI Regulations on Term Insurance Plans Covering Suicidal Death: Old & New Provisions

Term insurance policies can become a financial cushion and income replacement tool if availed for the right purpose. These include: 

    • The passing away of the primary breadwinner of the family 
    • An unforeseen death caused by an accident.
    • Permanent disability caused by critical ailments (listed in the policy wording) or accidents. 
    • Acquiring a terminal ailment (leaving the policyholder less than 6 months to survive).
    • Acquiring a critical ailment (listed in the policy wording)

All of the above have the potential to temporarily and permanently impact a family’s financial foundation and, more importantly, the members’ future goals. 

However, when it comes to stigmatized topics like suicide, the IRDAI is forced to take certain steps, which might seem robust but can’t be considered entirely insensitive. Here is a quick look at how the IRDAI’s regulations for term insurance coverage have changed over time: 

    1. Old regulations: Policyholders who passed away due to suicide in the 1st year of the policy period would not receive any coverage from the plan. However, from the 2nd year onward, suicidal deaths would be covered, and the beneficiaries/nominees would receive the sum assured. 
    2. New Regulations (2015 update): In case a policyholder passes away due to suicide in the 1st year of the policy, the nominee would receive at least 80% of the premium paid towards the plan. However, nothing would be offered from the base cover amount. On the other hand, if the policyholder passes away due to suicide after the 1st year of the policy, the death would be treated like any other, and the nominee would receive the entire base cover amount.

Things to Remember about Term Insurance Coverage for Suicidal Death

  1. Suicidal deaths are an exclusion under Term Insurance for year 1: While this might sound harsh, the truth is that this regulation from the IRDAI is a self-preservatory step that helps term insurers avoid falling prey to fraud. 

    On the other hand, for policyholders, even if their mind drifts to thoughts of self-harm, this 1-year hiatus can help them introspect and think of the finer aspects of life that might motivate them to approach mental health professionals who can help them deter from considering suicide.
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Please note: An insurance policy might offer families some financial cushioning to help them manage their lives, but it cannot replace the individual in discussion. Mental health issues and adversities that might push one to make such decisions can be dealt with if you are ready to accept some aid. Call the official government helpline at 9152987821 if you want to speak to someone about this or consult medical professionals.
  1. Suicidal tendencies have to be disclosed during the purchase of a term insurance plan: Term insurance policy purchases are usually preceded by a detailed questionnaire that includes queries about any mental health issues. Complete transparency in these questionnaires is a mandate because if the policyholder is found to have falsified any details (say, a death caused by suicide followed by an episode of depression that had been diagnosed before the policy purchase), the chances of claim rejection are quite high.
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Note: Under Section 45 of the Insurance Act, 1938 (as amended by the Insurance Laws (Amendment) Act, 2015), an insurer can repudiate a policy on grounds of fraud, misstatement, or suppression of material facts only within 3 years from the date of policy issuance, date of risk commencement, or date of revival — whichever is later.

After this 3-year period, the policy becomes incontestable, except in cases of proven fraud & onus of proving fraud lies entirely with the insurer.
  1. A case of fraud involved in the suicidal incident may lead to policy rejection: If the policyholder was involved in any fraudulent activities, the insurer may take a call to reject the claim raised by the policyholder’s family after he/she passes away due to a suicide.

Understanding Mental Health Issues and Suicides in 2025

The change in the regulations of the IRDAI, the increased discussions about mental health, the communities dedicated to raising mental health awareness, and health insurance coverage for mental health issues—all of this is a testament to how far we have come to de-stigmatize the topics related to mental well-being, psychological conditions, and suicides. 

Thanks to the progressive ideologies of Gen Z and the millennials, we have already made great strides to bridge societal gaps. While the journey is a long and tedious one, the strength and positivity shown by the younger generations have led to multiple channels of open discussions about episodes of depression, anxiety, and other psychiatric hurdles. 

This new focus has forced multiple industries (including insurance) to embrace this part of life’s hardships and craft features and benefits that would hail the cause. 

The hope now is that all of these efforts combined would motivate individuals to voice their concerns and open up about their mental health challenges, thereby cutting down the number of lives lost to suicide. (Hopefully, then, no one would need to search for “Does Term Insurance Cover Suicidal Death?”)

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Preventing Suicidal Thoughts and Ideas 

No, we are not about to preach what you are “supposed to do” if you are having suicidal thoughts. Grief and its impact are as varied: “to each their own,” so to say. However, the points below are just a quick attempt to remind you that suicide is never the way out, even if your term insurance policy will act as an income replacement. No financial tool can be an adequate substitute for you as an individual for your loved ones. 

    1. Talk to the people in your inner circle: Sometimes, a quick call or a long chat with family/friends can help you see things differently. Remember, human beings were not designed to sort everything out alone. So, a different perspective might mean a different outcome to issues that seem colossal to you. 
    2. Reach out to professionals: Psychiatrists and psychologists are available online and offline to help you address your issues. An unknown professional with techniques to help you overcome negative thoughts might be what you need. 

      (P.S. As per the regulations and mandate of IRDAI, it is mandatory to cover the cost of hospitalizations related to mental health conditions under top health insurance plans.

      Note: The psychotherapy cost will not be covered unless specifically mentioned in the plan or covered under the OPD benefits. You can always contact IRDAI-certified experts and seek their guidance about these policies that can help you with this kind of coverage.)
    3. Practice Cognitive Behavioral Techniques (CBT): The idea is to challenge negative thoughts and remind yourself to be kind to yourself. Half the battle will be won in the process. If you have contacted a professional, you can always take this up with them. 
    4. Try Distraction and Grounding Techniques: Embracing a habit or deep breathing might sound like quack theories, but they have often been instrumental in nipping issues at the bud. 
    5. Get involved in a community: Knowing that you aren’t the only one going through pain and struggles builds camaraderie that becomes a support system. During your highs and lows, you’ll have companions who have gone through something similar and can continue to build your confidence from the ground up. 
    6. Hotlines and Immediate Help: If you want to reach out and get immediate help, call this number - iCALL (9152987821).
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A Note to the Family of the Dearly Departed

Considering the emotional turmoil you must be facing, we want to ease your journey into finding a small bit of peace - a quick step-by-step breakdown to claim your term insurance plan.

STEP 1: Go to the insurer’s official website. Click on the “Claims” tab. 

STEP 2: Enter the policy number, DOB, and contact number (details required vary from one insurer to the other but is more or less a combination of these).

STEP 3: Keep a few documents handy - original policy document, filled-in claim form, additional medical evaluations about the unnatural death, passport-size photograph, ID proof, address proof, canceled cheque/bank passbook, and medical records for all the treatments taken in the past.

STEP 4: Apply for the claim and wait for the sum assured to be disbursed or for the claim team to reach out to you in case they need any clarifications on your current document or any additional documents.

(We hope this small help will help you avoid searching for methods to claim a term insurance policy under your current circumstances.)

What are the Top Term Insurance Plans in India Offering Coverage for Suicidal Death? 

All term insurance policies, under the regulations of the IRDAI, are bound to cover suicidal deaths from the 2nd year of the purchase or revival of the policy. 

Based on the insurer’s data record across the various credibility metrics (Claim Settlement Ratio, Amount Settlement Ratio, Complaint Volume, and Annual Average Business Income), the policy features, and term insurance riders, here is a look at the top term insurance policies -

  1. Axis Max Life Insurance Smart Term Plan Plus: The Axis Max Life Smart Term Plan Plus is a flexible term insurance plan with seven options to choose from. For most people, the "Regular (Level Cover)" and "Smart Cover" variants stand out. The Regular option is a simple, no-frills term plan, while the Smart Cover gives you 1.5 X coverage for the first 15 years—perfect if you want extra protection early on. It also includes all the must-have add-ons you’d expect from an excellent term plan, plus some thoughtful perks for women, like Lifeline Plus and Maternity Cover. Overall, it’s a well-rounded, customizable plan that can fit various needs.
  2. Bajaj Allianz Life Insurance E-Touch II: The e-Touch II plan from Bajaj Allianz Life Insurance is one of this stable's most popular term plans. The insurer offers the following features in this plan:
  1. TATA AIA Sampoorna Raksha Promise: If you are looking for a highly customizable term policy that is reasonably priced, the TATA AIA Sampoorna Raksha Promise plan can turn out to be a great option. The Accidental Total and Permanent Disability Rider and Hospicare benefits are unique to the policy. Moreover, this plan provides substantial coverage, even for individuals with lower annual incomes. The only consideration is the absence of a zero-cost option in its Non-Return of Premium variant, which is not a major deal-breaker. Overall, a good pick.
  2. ICICI Prudential iProtect Smart: ICICI Prudential iProtect Smart is a competitively priced term insurance policy for most profiles, providing attractive benefits, including a life stage benefit that allows you to increase your coverage upon reaching significant life milestones. Following recent changes in IRDAI regulations, it is one of the few plans in the market that offers comprehensive critical illness coverage for an extended period. Additionally, it features appealing first-year discounts for salaried individuals.
  3. HDFC Click 2 Protect Super: It offers comprehensive financial protection through multiple rider options, covering disabilities in various ways. The Accidental Total and Permanent Disability (ATPD) Rider provides coverage for severe injuries, such as the total and irrecoverable loss of two limbs, complete loss of sight in both eyes or a combination of limb and vision loss. It is available through the Income Benefit Rider, which ensures a steady income by paying 1% of the rider sum assured every month for 10 years in case of disability. 

Additionally, disabilities are covered under the Critical Illness (CI) Rider, which provides a lump sum payout upon diagnosis of specified conditions. The Waiver of Premium Rider further enhances protection by waiving future premiums if the insured suffers a disability or critical illness. While the Income Benefit Rider functions separately from the CI Rider, all three riders provide some form of disability coverage, ensuring financial security and peace of mind for the insured and their family.

What are the Other Term Insurance Policy Exclusions?

    1. Non Disclosure: When applying for term insurance, you must disclose any current or past health conditions, including chronic illnesses like heart disease, cancer, diabetes, asthma, or autoimmune disorders such as lupus. If you fail to provide this information—intentionally or not—it can be seen as a breach of trust. Since the insurer bases premiums and coverage on your health, withholding details about pre-existing conditions can lead to a claim being rejected.
    2. Death Under the Influence of Intoxicants: If you die from complications related to smoking, excessive drinking, or drug use, and these habits weren’t disclosed when buying the policy, the insurer can deny the claim. If you do disclose them, the insurer is more likely to honor the claim. However, hiding such information can give the insurer grounds to reject the payout.
    3. Death During Illegal Activities: If you die while involved in illegal activities like robbery, assault, or any criminal act, the insurer will reject your claim. Even if the death is accidental—such as during a police encounter while committing a crime—it won’t be covered.
    4. Fraud: Fraudulent actions, like declaring a lower age to reduce premiums or falsifying medical records, can lead to claim rejection. Similarly, submitting fake documents (e.g., inflated income proof of income) to secure higher coverage is considered fraud. Any misrepresentation of facts can result in the insurer denying your claim.

Why Approach Ditto Insurance for Your Term Insurance Policy?

At Ditto, we’ve assisted over 3,00,000 customers with choosing the right insurance policy. Why customers like Tanmay below love us:

Suicidal death coverage by term insurance policies

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Conclusion 

Suicide, at any age, is a sudden and unacceptable loss that leaves loved ones distraught. However unfortunate the death is, what can’t be denied is the financial implications that the family is left to bear after the loss. Under such circumstances, acknowledging the loss and preparing to push forward in life can get a bit easier if a term insurance policy is in place. But please understand that such losses and a financial pool to support a family’s future prospects are never comparable. Always be open to asking for help and contact a professional for psychological requirements and insurance advice. 

 

 

  

 

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