Suicide Clause

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.

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