What is a common exclusion in life insurance policies?

A common exclusion in life insurance policies is death due to suicide within the first few years of the policy. This exclusion, often referred to as the "suicide clause," serves as a way for insurers to manage risk and prevent potential abuses of the policy. Typically, this clause states that if the insured dies by suicide within a specified period—usually the first two years—the insurer will not pay the death benefit. After this period, coverage for suicide typically becomes effective, aligning with the principle of providing protection once the policy has had time to establish a reliable risk profile.

Natural disasters and accidental death are generally not considered exclusions in most life insurance policies, as policies are designed to provide coverage for such events under normal circumstances. Death during routine medical procedures may also not be excluded outright but could depend on specific details related to the procedure and the terms of the policy. In contrast, the suicide exclusion is widely recognized and mandated, making it a common feature across various life insurance products.