What is typically the outcome of a suicide within the first six months of policy issuance?

The outcome of a suicide within the first six months of a life insurance policy is generally a return of premiums paid. This practice is established to address the concern that individuals may purchase life insurance with the intent to end their life shortly after the policy is issued. Insurers often include a contestability period, usually around two years, during which they can investigate claims thoroughly. Within the first six months, many policies have a suicide exclusion that results in a denial of the claim; however, instead of leaving beneficiaries with no compensation, insurers typically refund the premiums that have already been paid.

This approach serves both as a protective measure for the insurer against potential fraudulent claims and as a way to provide some financial support to the beneficiaries, albeit not to the same extent as a full payout would provide. It reflects a balanced consideration for both parties involved in the contract.