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Warning
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Simple English definitions for legal terms
suicide clause
Read a random definition: N.W.
A quick definition of suicide clause:
Suicide clause: A rule in life insurance policies that says if the person who bought the policy dies by suicide within a certain time after buying it, their family won't get any money. This time is usually two years, but it can be shorter in some states. After this time, if the person dies by suicide, their family can get the money from the policy.
A more thorough explanation:
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.