What is excluded in most basic life insurance policies?

Most basic life insurance policies typically include an exclusion for death due to suicide within the first two years of the policy. This is known as the suicide clause and is included to prevent individuals from acquiring life insurance with the intention of taking their own life to benefit their beneficiaries financially. By excluding this coverage during the initial two years, insurers protect themselves from potential misuse of the policy.

Other causes of death, such as natural causes, accidental death, or those resulting from terminal illness, are usually covered by standard life insurance policies, provided that there are no other specific exclusions related to those circumstances. Thus, the suicide clause during the first two contract years is a significant and well-known exclusion in basic life insurance policies.