Under Texas law, after the second year, suicide may not be a defense against payment.

• A. False
• B. True
• C. Only if the policy has a rider
• D. Only for group policies

Answer: (B)

Two-year contestability and the suicide clause are the key ideas. In Texas, life insurance policies commonly include a suicide provision tied to the policy’s contestability period. If the insured dies by suicide within the first two years, the insurer can deny the claim or pay only a limited amount (often a refund of premiums, depending on the policy). Once the policy has been in force for two years, it becomes incontestable for purposes of death benefits, so suicide can no longer be used as a defense to payment. Therefore, after the second year the death benefit is payable to the beneficiary, assuming there are no other exclusions.

That’s why the statement is true. Riders or group policy status don’t change this general rule.