Expert: Ivan Goldberg, M.D. - 6/3/2009

Question
QUESTION: My father committed suicide the 19th of June 2006.  He was diagnosed with bipolar disorder, but didn't want to go on any medication.  He was very reluctant towards getting help - he was the kind of person who believed that the only person who can help him, is himself.  We only found out that he had bipolar disorder on the date of his death.  We had no idea that he was diagnosed before.  My question relates to his life policy.  I studied law and have my LLB degree, so my basic understanding under the law of insurance is quite good.  My dad's life insurance policy terms and conditions stipulates that "suicide, whether sane or insane" is excluded.  This exclusion comes into operation when the life policy is not older than 2 years.  The life policy wasn't 2 years at the date of his death.  My argument is that my dad didn't commit suicide due to financial enrichment for his family members, he had the bipolar disorder.  Could you put some light for me on the matter, please?  Could we argue a claim?  Thanking you in advance.

ANSWER: Hi Minescha . . .

In New York, where I live and practice, the law regarding the 2 year exclusion is exactly as you state it. I have heard of people trying to get around it by claiming that a completed suicide was caused by an illness, rattier then being motivated by the desire for financial benefit for the family. I have never heard of this argument being looked upon favorably by a court.

Best regards . . .

Ivan
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---------- FOLLOW-UP ----------

QUESTION: Hi Ivan

Thanks for the quick reply.

If at you look at the suicide exclusion clause, the main reason for the clause is to prevent an individual to take out life insurance and thereafter, to commit suicide for the sole purpose of either enriching his family members or to free himself and his family members from any financial burder, which in my dad's case, didn't happen.  He didn't commit suicide for financial reason.

Looking at the facts and the law and my view, would you attampt to claim?

Kind regards,
Minescha

Answer
As I said in my original reply I know people who have tried to make such a claim in New York and have not heard of any who were successful. Knowing that, if I were in your position, I would not go to court over the matter in New York. I suspect you can research similar situations in South Africa.

Best regards . . .

Ivan
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