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.

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.