Florida 2-14 Life And Annuity Practice Test

Under the suicide clause, if the insured dies by suicide within the specified period, what may occur?

Full death benefit Death benefit limited to premiums paid Policy voided No payout

Correct Answer:

Death benefit limited to premiums paid

Explanation:

A suicide clause limits the payout when death is by suicide within a short window after the policy starts. If death occurs by suicide during that period, the insurer doesn’t pay the full face amount. Instead, the death benefit is limited to the premiums paid (the policy may be surrendered or the premium refunds handled per the contract). This protection helps prevent a policy from being used as a vehicle for a self-inflicted death to gain full benefits, while still recovering the cost of coverage to date. After that period, the standard death benefit would typically be payable if death occurs from any cause, subject to the policy terms.

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