If an insured commits suicide after the suicide clause in their life insurance policy has expired, what action will the insurer take?

When a suicide clause in a life insurance policy expires, it typically means that the insurer is no longer permitted to deny a claim based on the suicide of the insured. Most life insurance policies include a specific period during which the insurer will not pay benefits if the insured dies by suicide; this is often set at two years from the policy’s effective date.

Once this period has lapsed, if the insured commits suicide, the insurer will generally process the claim and pay the death benefit to the designated beneficiaries. The rationale is that after this waiting period, the insurer has had adequate time to assess the risk associated with the insured, and the prohibition on paying for death by suicide is considered no longer applicable. This ensures that the beneficiaries can rely on the policy for financial support after the insured’s death, consistent with the purpose of life insurance, which is to provide financial security in the event of the insured’s passing.

The other options would not apply in this case because charging a penalty fee or returning only the premiums paid would not align with the contractual obligations defined by the policy after the suicide clause has expired. Refusing to pay the death benefit conflicts with the policy terms once the clause is no longer in effect.