What do I Need to Know About Life Insurance Exclusions?
First and foremost, life insurance exclusions are something you will want to pay close attention to. Just like when you buy anything in life, you want to know exactly what you are and aren’t getting with your purchase. Knowing the ins and outs of your policy and what will and won’t be covered could save you and/or your loved ones a lot of headache later on.
One of the most common exclusions, for instance, is the suicide clause. What this means is that if the policy holder commits suicide within a specified time period (often two years after the policy was purchased) the insurance provider will not pay the beneficiaries. Another thing to make note of is that if you were to purchase a new insurance policy in place of another policy, you will receive a new time period for the suicide clause, as well as the incontestability period (the time within which the insurance provider can dispute a claim). Essentially, these periods will start again with the new policy.
For people who partake in activities such as skydiving, there may also be a clause added to their policy that if they should die as a result of such activities, their claim will not be paid. Or, if you are someone who travels to any one of the regions around the world that insurance providers deem ‘high risk,’ you may also have an exclusion added to your policy. Life insurance exclusions, for the most part, are determined on a case-by-case basis so your lifestyle and activities will all play a part in this aspect of your insurance policy.
Be sure to discuss all possible exclusions with your life insurance agent before you purchase your policy so that there are no misunderstandings later on. Doing so will ensure you receive a policy that fully meets your insurance needs.