Suppose an individual gets a Life Insurance policy and then commits suicide.

Exclusions in life insurance policies. This includes factors that the company needs to take into account when determining your premium or your eligibility for the policy. Generally life insurance policies have a clause that denies payment in suicide deaths within a waiting period which is usually two years. However an insurance company wants to limit their losses by inserting some exclusions in life insurance policies.

Certain types of deaths are excluded from payment on a life insurance policy. Consider the following example. There are certain events and conditions that are not covered by an insurance policy and these are referred to as exclusions in life insurance.

These exclusions include. During this period the company will only refund the premium payments but will not pay out the death benefits. Let us understand this better with the help of an example.

Please contact your companys benefits administrator for costs and complete details. Any non-melanoma skin cancer that has not become metastatic spread. Stage 1A malignant melanoma melanoma less than or equal to 10 mm in thickness not ulcerated and without level IV or V invasion.

Whole-of-life policies on the other hand pay out no matter when you die. An individual buys a life insurance policy and then commits the act of suicide. Can you contest a suicide on a death certificate.

One life insurance exclusion is suicide within the first two years of the policy. Exclusions are circumstances or events that dont fall under the scope of a Life Insurance policy if it results in the death of the insured person. But some providers may include exclusions which mean that the cover no longer applies in certain circumstances or that you wont be accepted for life insurance.