New York Child Abuse Identification and Reporting Practice Exam

When is death by suicide not covered in a life insurance contract with a suicide clause?

1. During the first year of the policy

2. During the initial 2 year period

3. After the policyholder turns 60 years old

4. Throughout the entire duration of the policy

The correct answer is: During the initial 2 year period

In life insurance contracts, a suicide clause typically stipulates a specific period during which death by suicide is not covered. This period generally lasts for the first two years after the policy is issued. The idea behind this clause is to deter individuals with suicidal thoughts from taking out a policy with the intention of benefiting their beneficiaries shortly after. During this two-year period, if the policyholder dies by suicide, the insurance company typically denies the claim, and the beneficiaries would not receive the death benefit. After this two-year window has passed, the life insurance policy generally covers death by suicide, meaning the beneficiaries will receive the benefits upon the policyholder's death, regardless of the circumstances. Therefore, the correct answer reflects the specific timeframe (initial two-year period) during which a suicide would result in a denial of coverage under a typical life insurance policy with a suicide clause.