When you purchase a life insurance policy, you expect that your family will collect the death benefit if something unthinkable should happen to you. You need to know what exclusions your policy may include. There are several events that your policy may not cover. Being prepared is the best way for you to protect your family and make sure they are properly cared for in the event of your untimely passing.
The following are the 5 common exclusions in a life insurance policy.
1. War-time Peril
When people think of war-time peril, they think of soldiers. However, when you are talking about life insurance, this exclusion concerns individuals who travel to war-torn areas of the world for work or pleasure. For most, this is a risk that is not worth taking, but many will do it if it is part of their job. When it comes to recreational travel, however, this is a risk that your traditional life insurance policy may not cover.
2. Aviation or Sky Diving
Aviation and sky diving are also considered to be risky endeavors. If you fly on a regular basis, you may want to discuss your options with your insurer to ensure you have the coverage you need to protect your family. There are high-risk policies that may be available to you if you are interested in obtaining additional coverage. Even commercial airline pilots may have to look into an extra policy over and above what they may have through their employer.
3. Dangerous or Hazardous Activities
Dangerous or hazardous activities are high on the list of exclusions. This can mean anything from auto racing to motorcycling to rock climbing. Hang gliding and scuba diving are also thought to be incredibly dangerous and are often excluded from most life insurance policies. It may be a good idea to talk to your agent about what is listed in your policy as a hazardous or dangerous activity.
4. Illegal or Criminal Activity
One thing that most insurance companies will exclude is dying while committing an illegal act. For example, if you die while robbing a bank or trying to steal a car, there will be no insurance payout. Accidents that are caused while you are under the influence of drugs or alcohol open up a host of new concerns that can leave you holding the bag financially.
5. Suicide
Suicide is an unpleasant reality for many. If a person commits suicide, their life insurance policy will not offer a death benefit payout. However, in some states, the policy can return the amount of money paid in premiums for the life insurance policy back to the insured's beneficiary.
One of the first things you should do when purchasing a life insurance policy is to ask about the exclusions. Call our agents at the
Club Agency today to get the information you need to ensure that you are adequately covered on every level. Don't let another day go by, worrying about whether or not your life insurance policy will cover your family's needs. Ask our experts, for we have the answers and are always willing to help.
