Sane or Insane Clause Law and Legal Definition

Sane or insane clause is a clause in a life insurance policy extending the exception of suicide to intentional self-destruction by an insane as well as by a sane person, regardless of the moral or criminal quality of the act.

A sane or insane addition to a suicide exclusion in a life insurance policy bars recovery for the insured's self-destruction regardless of the degree or nature of the mental disorder from which he was then suffering. [Johnson v. Metropolitan Life Ins. Co., 273 F. Supp. 589 (D.N.J. 1967)].