Can a life insurance policy in Virginia include a suicide clause?

A life insurance policy in Virginia can indeed include a suicide clause, which is typically valid for the first two years of the policy. This clause is included to protect insurers against the risk of individuals taking their own lives shortly after the policy is initiated, as this could lead to a moral hazard where individuals might be more likely to take out a policy solely for the purpose of providing a death benefit to beneficiaries.

The rationale behind having a two-year period is that after this term, insurers often consider the risk of suicide to be significantly lower, and policies generally proceed to offer benefits regardless of the cause of death, barring any other exclusions. Thus, including a suicide clause for the initial two years is a common practice not just in Virginia, but across many states, as a way to mitigate potential abuses of the life insurance system.

This provision serves both the insurer's interests in maintaining a sustainable business model and the policyholder's rights once the initial risk period has lapsed.