Life Insurance Exclusions

With conflict and violence around the world, I often get asked if Life Insurance policies cover you in an act of war, or in an act of terrorism. I made this video with some information on Life Insurance Exclusions.If you don't feel like reading this post, go on down to the end and watch the video.

When you're looking at buying life insurance, it's important that you get the perfect plan possible. Every year, I get a lot of questions about life insurance payouts and cases when a life insurance company wouldn't pay the face value of the plan. Some applicants are worried about something happening to them, and their family not getting the money that is owed to them. This article is going to look at some of the rare cases in which your family won't get the money from the life insurance protection.

War Exclusion

As I mentioned, the most common question that I get is about Act of War Exclusion. In most cases, if you were to pass away in an act of war, your family is still going to get the payout from the plan. While it's true that once upon a time, insurance companies had these act of war exclusions, most of them have abandoned it.  While there might be some companies out there that still have this clause, the vast majority of them no longer do. You can ask your specific company to see how they would handle that situation if it were to arise.

Suicide Clause

Another common clause that I get asked about is suicide exemption. Most insurance companies have a suicide clause added onto the life insurance policy, which states that if the person insured commits suicide in the first two years of the plan, then the company is not going to payout the plan. Instead, the family will only receive a refund of the premiums.

This clause is in place to prevent someone from purchasing a life insurance policy, and then immediately committing suicide for their family to get the money.

If there are any questions about the cause of death, the court will decide if was caused by suicide or some other factor. That decision is going to impact the life insurance policy and the payout from that plan.

When this gets really tricky is with the drug overdosages. It's difficult for medical professionals to determine if the overdose was a purposeful suicide or if it was accidental. In most cases, if the overdose was accidental, the insurance company will pay for the plan, but it can get murky depending on the official cause of death.

Dangerous Hobbies

If you like to rock climb, sky-dive, or some other dangerous hobby, the insurance company is going to charge you more for your insurance protection. They will still give you coverage, but you'll be considered high-risk. As long as you tell the truth about your hobbies or dangerous activities, you'll be fine. The problem arises when you lie on your application.

If you were to die because of some dangerous hobbies, and you didn't disclose the information on your application, then the company will without the payout from the plan. Regardless of your job, hobbies, health, or any pre-existing conditions, you should always be 100% honest when you apply for insurance.

Aviation Exclusion

There is another exclusion that rarely comes into play. Most life insurance policies have an aviation exclusion. That simply means that if the insured person were to die because of a private plane crash, the company will not pay out the policy. Now, if the person were to die from a commercial flight, then you'll still get paid.

Life Insurance Exclusions

Every insurance company is different, which means that some companies might have some additional exclusion, but most of them won't. These are the few situations in which you or your loved ones won't get the money from the life insurance company.
It's important that you find the perfect life insurance plan to protect your family. You never know what's going to happen tomorrow, which means that you shouldn't wait another day to get the insurance protection that your family deserves.

Working with an Independent Insurance Agent

We know that shopping for life insurance can be a long and frustrating process. It's important that you find the perfect plan available. There are hundreds and hundreds of companies on the market, and all of them are going to give you different rates depending on the company that you choose.

Instead of wasting hours and hours calling different companies and getting quotes, let one of our independent insurance agents do all of that hard work for you. Unlike a traditional insurance agent, our independent brokers work with dozens and dozens of excellent insurance companies across the country. We know which companies are going to give you the best plan to protect your loved ones.

If you have a pre-existing condition or you've been declined for life insurance in the past, don't assume that you can't get a quality insurance plan. Regardless of health, it's possible to get affordable insurance coverage. Don't let your health keep you from getting the life insurance coverage that your family needs.

If something awful were to happen to you, and you didn't have life insurance coverage, your family would be left with a massive amount of debts and other final expenses. Losing someone that you love is never going to be easy, but being responsible for thousands and thousands of dollars of debt is going to make the whole situation that much worse.

If you have any questions about life insurance exclusion or the various options available to you, please contact one of our experienced agents today. We would love to answer those questions and connect you with the best possible insurance plan available.

Hi, this is Liran Hirschkorn, from Today I want to talk to
you about a question that I often get asked; especially today with some of
the violence and conflict that's going on in the world. People ask me, "Am
I covered if something happens to me in an act of war or in an act of
terrorism," so the answer is that, yes, you would be covered. Most
insurance companies have excluded or eliminated these exclusions that
they've had in the past for things like acts of war, and you would be
covered if you died during an act of war, so the question is, what's not
included in an insurance company policy.
Typically things excluded would be things like if you committed suicide in
the first two years of the policy, if you died while committing an illegal
activity such as robbing a bank, you got shot and you died. You wouldn't
be covered, and not disclosing things like high risk activities, like let's
say you're a pilot on a private plane, or you are involved in rock climbing
or sky diving. You want to make sure you're up front on the application if
you're involved in those activities to see whether or not you get an
exclusion on your policy for something like that, or whether it gets
included potentially at a higher cost in your policy.
These are some of the exclusions on life insurance policies. I would tell
you, always be honest and up front on your application and if you are
traveling internationally, let the insurance company know on your
application that you do travel internationally. Different countries have
different levels of risk and so you want to make sure you're up front about
that on your application, to see how the insurance company would treat
that. If you're looking for a life insurance quote, visit my website, and I'll help you get a life
insurance quote at the best possible rate. Thank you.
Author: Liran Hirschkorn