Legal Definitions - suicide clause

Suicide clause is a standard clause in life insurance policies that limits payments made to survivors of a policyholder who dies by suicide within a certain period after purchasing the policy.

For example, if someone buys a life insurance policy and dies by suicide within the first two years of coverage, the insurance company typically won't pay a death benefit. This is commonly known as the exclusion period. However, once the exclusion period ends, the policy's beneficiaries can receive a death benefit if the covered person dies by suicide.

In most states, the exclusion period is two years. But in states such as Colorado, Missouri, and North Dakota, the exclusion period is shorter, and the beneficiaries can claim death benefits after the policy has been in force for a year.

This clause is included in life insurance policies to prevent people from buying a policy with the intention of committing suicide shortly after. It also protects the insurance company from fraudulent claims.