Suicide Clause

What Does Suicide Clause Mean?

A suicide clause is a provision in most life insurance policies that voids the policy if the policyholder commits suicide within a specified period after the policy’s start date. This period is typically two years. The length of the clause varies between insurers, so it’s worth checking the exact terms when comparing top-rated life insurance companies.

Insuranceopedia Explains Suicide Clause

A suicide clause allows insurance companies to protect themselves against situations where an emotionally distressed policyholder purchases a high-value policy and then commits suicide, enabling their beneficiary to receive a substantial death benefit. Similarly, the clause may serve as a deterrent for the policyholder, as they know their beneficiary would not receive any benefits in the event of suicide. If the death occurs within the clause period, the insurer usually refunds the premiums paid rather than paying the full death benefit, which is one of the payout limitations covered in our guide to life insurance beneficiary rules. The clause applies to both permanent and term life insurance policies, and the clock typically restarts if the policy is reinstated after a lapse.