On the Suicide Exclusion in Japanese Life Insurance

Abstract

Purpose: This study examined suicide risk associated with life insurance in Japan. As paying insurance against the risk of suicide may lead to suicide, we present countermeasures. Research design, data, and methodology: This study examines why suicide is exempt and why insurance pays for suicides by reviewing the literature. Results: The study indicates that to prevent suicide, suicide should be completely exempt from liability for corporate insurance in which the company is a policyholder. Implications: Life Insurers in Japan do not distinguish between cases in which the policyholder is a company or household. In the future, it will be necessary to distinguish between suicide treatment and life insurance.