Does life insurance pay out for suicide? 
Yes , after the contestability period . Life insurance policies normally dont cover suicide deaths that occur during the contestable period , which under the laws of most states , is the first two years after the policy is purchased . State laws limit coverage because lawmakers dont want to encourage suicide . They presume that insureds may be less tempted to take their own lives if they know life insurance benefits wont be paid to their survivors . Lawmakers also want to avoid abuse of life insurance , the purpose of which is to provide financial assistance to survivors after natural or accidental death . 