What type of coverage is typically excluded from group life insurance policies?

In group life insurance policies, coverage typically excludes suicide within the first year of the policy. This exclusion exists because insurance companies aim to prevent moral hazard, where individuals might take out a policy with the intent to commit suicide shortly thereafter, thus benefiting from the policy payout. The one-year period allows the insurance provider to mitigate the risk associated with premeditated actions that could lead to claims shortly after the policy is initiated.

Other types of coverage, like natural causes of death and accidental deaths, are generally included, as they align with the purpose of providing financial protection against unforeseen circumstances. Illnesses diagnosed after signing the application may also be covered, depending on the terms of the policy and whether they were pre-existing conditions known before the coverage took effect. However, the specific exclusion of suicide within a certain timeframe, commonly referred to as the suicide clause, is a standard practice in the life insurance industry, distinguishing it as the correct answer in this context.