When the cause of death is suicide, life insurance policies typically pay out only when the suicide

Question:

When the cause of death is suicide, life insurance policies typically pay out only when the suicide occurred after an exclusionary period has passed, usually around a year after purchasing the life insurance. Why do life insurance companies insist on an exclusionary period? If you compared suicide rates in the year before and the year after the exclusionary period, what do you predict you would find?
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Modern Principles of Economics

ISBN: 978-1429278393

3rd edition

Authors: Tyler Cowen, Alex Tabarrok

Question Posted: