Executive summary (short answer)

Yes, but with conditions. In the Philippines, a Mortgage Redemption Insurance (MRI) policy is a type of life insurance tied to a home loan. As a general rule under the Insurance Code, suicide is covered if it occurs after the policy has been in force for two (2) years from issuance or last reinstatement. Many MRI policies also cover suicide earlier (e.g., after one year) because insurers may choose a shorter exclusion period. If the insured was insane at the time of suicide, coverage generally applies regardless of the two-year period. Always check the exact wording of your MRI certificate.

What is Mortgage Redemption Insurance (MRI)?

MRI (often called credit life insurance for mortgages) is a policy that pays the outstanding housing loan balance if the borrower dies (and, in some products, upon total and permanent disability). Key characteristics:

Purpose: Protects the lender’s credit exposure and the borrower’s family from losing the home to foreclosure.
Beneficiary: Usually the mortgagee (the bank or lending institution) is the irrevocable beneficiary to the extent of the unpaid loan; any excess proceeds, if any, go to the borrower’s estate or named beneficiary, depending on the policy.
Premiums: Often paid upfront (single premium) and financed into the loan, or paid annually with decreasing sum assured as the loan amortizes.
Coverage amount: Typically decreasing term equal to the outstanding balance, sometimes with level coverage.

Legal framework (Philippine context)

While MRI is a specialized product, it is fundamentally life insurance; thus, the Insurance Code of the Philippines (as amended) governs:

Suicide clause: The insurer is liable for death by suicide after the policy has been in force for two years, counted from the date of issue or last reinstatement. A policy may lawfully adopt a shorter exclusion (e.g., 1 year), but not longer. Suicide while insane is generally covered even within the exclusion period.
Incontestability: After a life policy has been in force during the lifetime of the insured for two years from issue or last reinstatement, the insurer may no longer rescind it for misrepresentation or concealment (subject to narrow exceptions). This complements the suicide clause but is distinct from it.
Group credit life rules: Many MRIs are issued on a group basis (the lender is the policyholder; borrowers receive individual certificates). Group policies must still comply with the Code and applicable regulations on disclosure, claims handling, and unfair claims practices.

Practical takeaway: If your MRI certificate uses the standard two-year suicide exclusion, suicide after two years is covered. If your certificate states one year, coverage vests after one year. Any attempt to set an exclusion longer than two years is generally void.

How the suicide clause works in MRI

1) Timing: when does the “clock” start?

Date of issue: The baseline is the policy or certificate’s effective date.
Reinstatement resets the clock: If the MRI lapses (e.g., missed premium, policy terminated and later reinstated), a reinstatement usually restarts the suicide-exclusion period from the reinstatement date.
Refinancing / loan takeout: A new loan with a new MRI (or a fresh certificate) generally means a new policy date; the suicide-exclusion period typically starts anew.

2) Insanity exception

If the insured commits suicide while insane, the Code generally does not bar recovery, even within the exclusion period. Evidence of insanity (e.g., psychiatric records, medico-legal findings) becomes critical.

3) What counts as “suicide”?

Typically defined as intentional self-inflicted death. Policies often exclude “intentional self-inflicted injury” as a cause of death within the exclusion period.
Accidental deaths (e.g., misadventure without intent) are not suicide; insurers may investigate when the manner of death is unclear (accident vs. suicide).

Common policy structures and variations you’ll see

Exclusion period: Often 1 year in many MRI certificates; 2 years is the statutory default ceiling. Check your certificate.
Pre-existing condition (PEC) clause (group MRI): Some MRIs add a short PEC exclusion for non-underwritten group business. The clause must be reasonable and compliant with regulations; it does not override the suicide rule but can be an independent ground for denying a claim if the death is linked to an excluded PEC within the PEC period and the wording supports it.
Contestability vs. suicide: Even if the suicide exclusion has lapsed, the incontestability rule may foreclose rescission for misrepresentation after two years—but material, provable fraud discovered before the incontestability period may still be actionable.
Assignment/beneficiary mechanics: Because the bank is usually irrevocable beneficiary to the extent of the unpaid balance, MRI proceeds first extinguish the loan; any surplus (if provided for) goes to the estate or secondary beneficiary.
Decreasing Sum Assured: If the death occurs late in the term, the MRI’s sum assured might be less than the original loan (due to expected amortization). If the borrower is in arrears, the outstanding balance may be higher than expected; coverage is usually capped by the certificate’s definition of “outstanding balance.”

Typical claim scenarios

Suicide within exclusion period (e.g., 1 year):
- Outcome: Usually denied, unless the insured is proven insane at the time of suicide or the policy uses a shorter exclusion which has already lapsed.
- Focus: Timing and proof of insanity (medical/psychiatric evidence).
Suicide after exclusion period (e.g., after 2 years):
- Outcome: Covered, subject to standard policy conditions and absence of other valid defenses (e.g., policy not lapsed, no material breach).
- Focus: Dates (issue, reinstatement), policy in force, no exclusions.
Unclear manner of death (accident vs. suicide):
- Outcome: Insurer investigates. If the evidence is equivocal, burden allocation and policy wording matter. Many policies do not pay for intentional self-harm; if intent is not proven, claims tend to be treated as accidental.

Documentation and proof typically required

Claim form (completed by lender/beneficiary and by the insured’s representative).
Death certificate (PSA-certified), medico-legal or autopsy report (if available).
Police blotter / NBI report or incident reports (for non-natural deaths).
Attending physician’s statement and medical records; psychiatric records if insanity is claimed.
Loan statement from the bank showing outstanding balance as of date of death.
Policy/certificate and any endorsements; proof of premium payment (if applicable).
Identification and estate/beneficiary documents (as the policy requires).

Tip: When insanity is invoked, expect the insurer to require robust psychiatric evidence predating the death (diagnoses, treatment notes, medications), plus medico-legal corroboration.

Claims handling: timelines and practicalities

Notice and proof of loss: Give written notice promptly and submit complete proofs as specified in the certificate. Delays are usually excused if reasonably justified, but do not rely on leeway—file early.
Settlement period: Insurers must handle claims fairly and promptly under Philippine regulations and the policy’s stated timeline. Provide complete documents to avoid interruptions.
Partial vs. full settlement: Because MRI pays the outstanding balance, the insurer typically pays the lender directly. Secure a loan closure letter and cancellation of mortgage annotation after settlement.
Disputes: If a claim is denied or delayed, borrowers/heirs may seek assistance from the Insurance Commission (mediation/adjudication) or pursue court action.

Red flags and pitfalls

Lapse and reinstatement: A lapsed MRI that is later reinstated can restart the suicide-exclusion clock. Track your dates carefully.
Refinancing/new bank: New MRI = new dates = possibly new exclusion period.
Certificate wording differences: Group MRI certificates sometimes have unique definitions of “outstanding balance,” waiting periods, or PEC clauses—do not assume uniformity across lenders/issuers.
Misrepresentation at application: Within the contestability period, material misstatements (e.g., psychiatric history) can fuel rescission independent of the suicide clause.

Frequently asked questions

1) If the policy says “suicide excluded for one (1) year,” is suicide covered after one year? Yes—assuming the policy stays in force and there’s no reinstatement that resets the clock. A one-year exclusion is permissible; coverage applies after one year under that wording.

2) What if the policy is silent on suicide? If truly silent, the statutory rule applies: covered after two years (and covered earlier if the insured was insane).

3) Does the “insanity” exception require a court declaration? Not necessarily, but proof is required. Medical history, psychiatric evaluations, prescriptions, and medico-legal findings are commonly used.

4) If multiple borrowers are covered, how is the claim paid? Group MRIs often cover each borrower up to a share or up to the entire balance depending on the certificate. On death of one borrower, the insurer pays per the insured share or the outstanding balance rule stated. Check the certificate.

5) Are premiums refundable if a suicide claim is denied within the exclusion period? Usually no; premiums pay for coverage and administrative costs already provided. Some products may have limited refunds or free-look periods; check your documents.

Practical steps for borrowers and families

Locate the MRI certificate and note: issue date, any reinstatement date, suicide exclusion period, and beneficiary clause.
Get a formal loan statement showing the outstanding balance as of the date of death.
Assemble medical and legal documents early, including psychiatric records where relevant.
Submit complete proofs to the lender/insurer as soon as possible; keep stamped copies or email acknowledgments.
If denied, ask for a written explanation citing specific clauses; consider regulatory mediation or legal counsel.

Bottom line

Default rule: Suicide is covered after two years from issue or last reinstatement; earlier coverage may apply if your MRI uses a shorter exclusion (commonly one year).
Immediate coverage if insane: Suicide while insane is generally covered even within the exclusion period.
Always read your certificate: MRI terms can vary across lenders/issuers, especially in group credit life settings.

This article provides general information and is not legal advice. For a disputed or complex claim, consult your policy documents and seek advice from a Philippine insurance lawyer or the Insurance Commission.