Health and Life Insurance

Category - Annuities & Policies

What is the purpose of the suicide clause?
  1. To prevent people from committing suicide
  2. To prevent fraudulent claims
  3. To prevent people contemplating suicide from buying insurance
  4. To prevent insurance fraud
Explanation
Answer: C - The purpose of the suicide clause is to prevent people contemplating suicide from buying insurance. Suicide clauses declare a specified period of time that the policy will not pay if the insured commits suicide. While the length of time varies, the suicide clause time frame is usually 1-2 years.
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