Under what circumstance can premiums be refunded in the case of a suicide exclusion?

When it comes to life insurance policies, a suicide exclusion typically stipulates that if the insured individual commits suicide within a specified period after the policy becomes effective, the death benefit will not be payable. However, insurance companies often include a provision that in cases where the insured dies due to suicide within this exclusion period, the premiums paid may be refunded to the beneficiaries instead of providing the death benefit.

This refund serves to acknowledge the investment made by the policyholder without honoring the claim due to the suicide clause. This logic underscores the rationale behind option B. If the insured dies within the exclusion period, while the insurance company does not have to pay the death benefit, the premiums are returned because they were collected during a time when coverage was limited under specific conditions.

The other options don’t align with the standard practices surrounding the suicide exclusion and premium refunds. Having more than one missed payment does not activate a refund; terminal illness may affect the policy terms, but it does not relate to the suicide clause; and simply contacting the insurance company does not trigger any entitlement to a premium refund related to the conditions of the exclusion.