Upon the death of an insured, when is the benefit not paid due to a suicide clause?

The benefit from a life insurance policy is typically not paid if the insured commits suicide within the first two years of the policy's effective date. This is known as the suicide clause. Insurers include this provision to mitigate the risk of individuals purchasing a policy with the intent of ending their life to provide a financial benefit to their beneficiaries.

After the two-year period, the insurance company generally must pay the death benefit, regardless of the cause of death, assuming all other policy requirements are met. This two-year timeframe is standard in many life insurance policies, and understanding this can help both policyholders and beneficiaries grasp the terms and conditions surrounding coverage.

Policies may differ slightly in wording and specific conditions, but the two-year limitation for the suicide clause is commonly accepted in the insurance industry, which is why this option is correct in this scenario.