Suicide clause

The suicide clause is a standard exclusion in individual life insurance. If the insured dies by suicide within a set period after the policy takes effect, typically two years, the insurer doesn't pay the death benefit; it usually refunds the premiums paid instead, sometimes minus any loans. After that period, death by suicide is covered like any other cause. It's a separate provision from the incontestability clause, though both often run two years.

Most states allow up to two years, and a few, including Colorado and North Dakota, limit the period to one year. Hypothetically, if an insured dies by suicide 14 months after a policy was issued in a state with a two-year clause, the beneficiary would typically receive the premiums paid, not the face amount. Employer group life coverage often has no suicide clause, though supplemental coverage may.

Questions arise when a policy is replaced, converted or reinstated: a new policy usually starts a new period, while rules for reinstatement and conversion vary by state and contract. Insurers review deaths in the exclusion period, and the cause recorded on the death certificate can be disputed. See Does life insurance pay for suicide? The suicide clause explained and what life insurance doesn't cover: exclusions to know.

If you or someone you know is struggling, call or text 988 (Suicide & Crisis Lifeline).