Which is a common exclusion found in life insurance policies?

Life insurance policies often have specific exclusions that limit the insurer's liability under certain circumstances. One of the most common exclusions is death resulting from suicide within the first two years of the policy. This is referred to as the suicide clause. Insurers typically include this exclusion to mitigate the risk associated with individuals who may purchase life insurance with the intent to commit suicide shortly thereafter, thereby benefiting financially from the policy.

Insurance companies aim to promote responsible use of their products and to prevent moral hazard situations. By including a defined period during which deaths by suicide are excluded from coverage, insurers are protecting against potential abuse of the policy.

In contrast, death after a serious illness, accidental death, and deaths from natural causes after age 70 are generally covered under life insurance policies, barring any specific conditions or additional exclusions that might apply.