Suicide clause

Purpose

The suicide clause governs whether, and under what conditions, a life insurer must pay the death benefit if the life insured takes their own life. Without such a rule there would be a significant moral-hazard risk: a high sum insured could be taken out shortly before a planned suicide, purely to benefit dependants. The clause therefore limits the exclusion to a defined period after policy inception, typically three years.

Effect and limits

If the life insured intentionally commits suicide within that period, the insurer is released from its obligation to pay the sum insured; under German law it instead owes only the surrender value plus any accrued bonuses. Once the period has elapsed, suicide is treated like any other cause of death. An important exception applies where the act was committed in a state of pathological mental disturbance that excluded free will – in that case the full benefit remains payable. The beneficiary generally bears the burden of proving the exception, while the insurer must prove intentional suicide.

Negotiation and practice

The waiting period can be extended by agreement but not shortened. Under most wordings, reinstatement, an increase in cover, or a material variation restarts the period. In borderline cases, medical documentation of the insured’s mental state at the time of death is often decisive for the claim.

Jurisdictional comparison

In Germany (Section 161 VVG) and Austria (Section 169 VersVG) the three-year period is set directly by statute, and any agreement less favourable to the policyholder is void. Swiss insurance law, by contrast, contains no dedicated suicide provision for life insurance; the waiting period stems solely from insurers’ general policy conditions, which in practice follow the three-year DACH market standard. Case law on the statutory periods in Germany and Austria therefore cannot be applied directly to Swiss contracts.