Definition - What does Suicide Clause mean?
A suicide clause is a provision in most life insurance policies that states that the policy will be void if the policyholder commits suicide within a specified period of time following the policy start date. This period is usually two years.
Insuranceopedia explains Suicide Clause
A suicide clause offers insurance companies a way to guard against situations in which an emotionally distressed policyholder purchases a high value policy and commits suicide so that their beneficiary can receive a considerable death benefit. In a similar vein, knowing that their beneficiary would not receive any benefits may deter the policyholder from committing suicide.
How Well Do You Know Your Life Insurance?
The more you know about life insurance, the better prepared you are to find the best coverage for you.
Whether you're just starting to look into life insurance coverage or you've carried a policy for years, there's always something to learn.