Insurance companies need only refund policy premiums if an insured commits suicide before the date specified in the suicide clause of the life insurance policy.

Question

Quizplus · Accepted Answer

This is true. If a person commits suicide before the date specified in the suicide clause of their life insurance policy, the insurance company is required to refund the policy premiums to the beneficiaries of the policy. However, if the suicide occurs after this date, the insurance company is not required to pay out the policy benefits. The suicide clause is typically included in life insurance policies to prevent people from buying a policy with the intent of committing suicide and leaving the benefits to their beneficiaries.

Insurance Companies Need Only Refund Policy Premiums If an Insured