Suicide Clause of Life Insurance

What is a suicide clause for life insurance and how does it work?

A suicide clause is a limitation in all life insurance policies to the effect that no death benefit payment will be made if an insured person commits suicide within the first two years that the life insurance policy is "In Force."

This clause protects the life insurance company against adverse selection - that is, purchase of a life insurance policy in contemplation of planned death in order for a beneficiary to collect the proceeds.

Learn more about the suicide clause of life insurance and how it works.