Definition of "Suicide clause"

Limitation in all life insurance policies to the effect that no death payment will be made if an insured commits suicide within the first two years that the policy is in force. This clause protects the company against adverse selection-that is, purchase of a policy in contemplation of planned death in order for a beneficiary to collect the proceeds.

image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Insurance Terms

Method of determining whether or not coverage is available for a specific claim. If a claim is made during the time period when a liability policy is in effect, an insurance company is ...

Acknowledgment by the policyowner that he or she has received the policy loan requested. ...

Provision in a property, liability, or health insurance policy stipulating the extent of coverage in the event that other insurance covers the same property. ...

Membership organization of insurance companies that write workers compensation insurance. The organization collects statistics on the frequency and severity of job-related injuries to ...

Individual or organization that is a potential purchaser of an insurance product. ...

Care in a sanitarium, nursing home, or other facility designed to provide custodial care on behalf of the mental and physical well-being of the patient. The cost may or may not be provided ...

Premium paid by an insured business to an insurance company from which the company subtracts charges for the cost of putting a policy on its books, premium taxes, and profit. The remainder ...

Coverage under the auspices of a federal or state agency that can be either mandatory or elective. ...

Pension plan format. After deciding how much to contribute, the employer can suspend, reduce, or discontinue contributions during the first 10 years only for reasons of business necessity; ...

Popular Insurance Questions