When it comes to Medical Aid in Dying (MAID) — often referred to in legal terms as “death with dignity” — the intersection with life insurance is actually clearer than most people expect.
In Vermont, the law provides specific protections to ensure that choosing this path does not result in the denial of life insurance benefits.
Does Vermont Law Protect Life Insurance?
Yes. Vermont’s Patient Choice at End of Life Act (Act 39) explicitly addresses this concern.
According to the law, a death resulting from the self-administration of medication under the act is not considered suicide, assisted suicide, mercy killing, or homicide under Vermont legal statutes.
Key Protections Under Act 39
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Legal Classification: Because the law does not classify the death as a “suicide,” the standard “suicide clause” found in most life insurance policies generally does not apply.
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Contract Integrity: Insurance companies are prohibited from denying or altering benefits because a person chooses to use the Act.
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Policy Validity: A person’s choice to use medical aid in dying cannot be used as a reason to cancel or invalidate a life insurance policy.
Important Factors to Consider
While Vermont law is protective, there are two “fine print” areas you should verify with your father's specific policy:
1. The Two-Year Contestability Period
Almost all life insurance policies have a suicide clause that lasts for the first two years of the policy. If a policy was purchased very recently (within the last 24 months), insurers sometimes look more closely at the cause of death. However, because Vermont law states MAID is not legally suicide, the policy should still pay out — but it is a detail worth noting if the policy is brand new.
2. Residency Requirements
In 2023, Vermont became the first state to remove the residency requirement for its medical aid in dying law. This means your father can travel to Vermont to access this care.
However, you should confirm if the life insurance policy was issued in a state with different laws. While the “cause of death” is determined by where the death occurs (Vermont), the “contract law” governing the policy might be tied to his home state. Most experts agree that the death certificate — which in MAID cases usually lists the underlying terminal illness (e.g., cancer) as the cause of death — is what the insurance company relies upon.
To ensure total peace of mind, here are the steps you might take:
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Action Item |
Why it Matters |
|---|---|
|
Review the Death Certificate |
In Vermont, the underlying illness is typically listed as the cause of death, not “assisted suicide.” |
|
Check Policy |
Ensure the policy has been active for more than two years to bypass any contestability hurdles. Also, check the policy for any other specifics that might affect MAID, including any ‘choice of law’ provisions. |
|
Consult a Specialist |
Organizations like Compassion & Choices provide specific resources for families navigating the legalities of Vermont’s Act 39. |
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