When you take out a loan or a loan , it is not uncommon for you to buy life insurance. Sometimes, the conclusion of a policy agreement is a prerequisite for using the offer. The task of the insurance is to protect the borrower and also the lender in a situation where the former will not be able to repay his obligation. Will the insurance cover work if the borrower has committed suicide?
Although in Poland there are no statistics on the reasons why suicides are committed, many of us have encountered cases where the financial situation was the reason for barging on their own lives.
Thoughts of suicide may arise when problems start to arise with debt repayment, bailiffs take up and apartment is lost. Many people lose their sense of life then, the property they have been working on for years. Some come to the conclusion that the only solution is to commit suicide.
What prevents us from loan insurance?
Policies available in banks along with loans and credits are usually life policies. They are structured in such a way that they allow for temporary or permanent repayment of liabilities resulting from a loan or credit under certain circumstances. Usually insurance will work if we lose a job, we will have an accident or get sick and we will not be able to pay off debts, also in the event of the borrower’s death. However, we should remember that each insurance company has its own individual contract terms and it may turn out that they will include all causes of illness, accident or death of the borrower.
Suicide is a special case which is interpreted by insurance companies in various ways. To find out whether it will be possible to pay compensation in order to cover the obligation in such a situation, we must delve into the terms of the contract, namely the so-called exclusions from liability. These exemptions apply to cases where the insurer does not have to pay compensation.
When is suicide compensation available?
In the majority of loan and credit insurance contracts, we find a provision that the exclusion of liability applies in the case of suicide or attempted suicide in the first two years from the date of commencement of insurance coverage.
This provision results from the Civil Code (Article 833), in which we find the following information: “In the case of life insurance suicide of the insured does not release the insurer from the obligation to provide, if the suicide occurred after two years from the conclusion of the insurance contract. The contract or general terms and conditions of insurance may shorten this period, but no more than up to six months. “
However, it is worth pointing out that insurance companies often try to do everything in order not to pay compensation in such a situation, especially when it comes to high amounts, for example with a mortgage loan. Then it is necessary to contact a good lawyer who will be able to help you in this difficult matter.