Most life insurance policies have a suicide clause, which typically states that if the policyholder dies by suicide within a specified period of time after the policy is issued (usually two years), the death benefit may not be paid out. This clause is intended to prevent individuals from purchasing life insurance with the intention of committing suicide shortly thereafter, as it would be considered fraud.
If the policyholder dies by suicide outside of the suicide clause period, the death benefit will generally be paid out to the beneficiaries. However, there may be exclusions or limitations based on the specific circumstances surrounding the suicide, such as if the policyholder had a pre-existing mental health condition or if they intentionally caused their death in a way that violates the terms of the policy.
It’s important to carefully review the terms of your life insurance policy and understand any limitations or exclusions related to suicide. If you have concerns about whether or not suicide is covered under your policy, you should consult with a financial advisor or an insurance agent.