If the insured dies by suicide within the stated period, what is typically paid under the suicide clause?

• A. Full death benefit payable
• B. Premiums returned only
• C. Death benefit limited or premiums returned
• D. No benefit payable

Answer: (C)

The key idea is how suicide within a short window is handled. If death by suicide occurs during the specified period (often the first two years after issue), the policy doesn’t pay the full death benefit. Instead, it typically pays a limited amount—either the premiums paid to date or a death benefit limited to the premiums already paid. This arrangement protects the insurer from a moral hazard while still returning some value to the beneficiary if death happens early. After that period, the full death benefit is usually payable.