Exclusions

You want your life insurance to work out for your family when you die right? Of course you do! This is why it is best for you to know every single detail of your life insurance as best as you can. You need to know what you are up against, how you can improve your life insurance, and if there are any exclusions. Let’s talk a little bit about how exclusions can play a role in this insurance, and what you can do to limit its effects. As long as you are happy with your life insurance then everything will be fine. Do not let exclusions bring it crashing down.

What is an Exclusion?

An exclusion is a statement within the life insurance policy that will outline conditions or type of loss that is not covered. These exclusions will be within the policy and they will be clearly marked. You need to know what these exclusions are, because this is a key part of becoming familiar with all aspects of your coverage. Your beneficiary must also know what exclusions surround your policy, because they will be the ones making the claim. There are many exclusions, and they vary among life insurance companies, but the following are some of the main ones.

Common Exclusions

The Aviation Exclusion states that the policy will not pay out if the insured is involved in a private plane crash, and not a passenger on a commercial flight. If you like to fly private planes, take note of this. The Suicide Clause states that the company will not pay out the face value of the policy if the insured commits suicide within two years of purchase. Sometimes this might mean all that is returned are the premiums. The Dangerous Activity Exclusion states that no payment will be made if the insured dies while participating in such activities as rock climbing, auto racing, hang gliding, bungee jumping, etc. If you like to participate in something like this, clear it with your insurance company.

War Exclusion?

Some life insurance companies will not pay out a settlement if the insured dies as a result of war. This is an exclusion that you need to pay attention to if you are in the military. There can be other options for you, and there is life insurance through the military that can help you in this situation. It is just important that you do not rely on your life insurance company to help you out during this time. This is a big exclusion, but it often times goes unnoticed by many people. If you are in the military, or thinking about enlisting, look for alternative options of life insurance.