What occurs under a suicide clause during the first two years of insurance?

In the context of life insurance, a suicide clause is a provision included in many insurance policies that limits the payout of the death benefit if the insured dies by suicide within a specified period, typically the first two years of the policy.

When a death occurs under this clause within the specified timeframe, the insurance company typically pays only the amount of premiums that have been paid by the policyholder, rather than the full death benefit. This is primarily intended to discourage individuals from taking out a policy with the intention of committing suicide shortly thereafter to provide a financial windfall to beneficiaries.

The other choices do not correctly address the function of the suicide clause. Paying full benefits automatically or returning the premium paid would negate the purpose of a suicide clause, and making the policy void would not align with common industry practices where some benefit—though limited—is provided. Thus, the correct answer reflects the insurance company's approach to mitigate risk and prevent potential abuse of the policy.