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

Exclusions in life insurance policies. As per the policy the sum assured in the Life Insurance policy should be paid to the nominee on the death the policyholders death. This includes factors that the company needs to take into account when determining your premium or your eligibility for the policy. There are certain events and conditions that are not covered by an insurance policy and these are referred to as exclusions in life insurance.

1 Like most group life insurance policies MetLife group life insurance policies contain certain exclusions limitations exceptions reductions of benefits waiting periods and terms for keeping them in force. An individual buys a life insurance policy and then commits the act of suicide. During this period the company will only refund the premium payments but will not pay out the death benefits.

These exclusions include. Exclusions are events or situations that if they result in the death of the policyholder are not covered by a Life Insurance policy. 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.

Let us understand this better with the help of an example. All life insurance companies do not pay out the sum assured when death takes place by suicide within the first year of the policy term. The following are excluded from coverage.

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. However a suicide is an exclusion in a Life Insurance policy.

The contestable period the suicide clause alcohol and drug use illegal activity dangerous activity acts of war the aviation exclusion misstatement of age. 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. The following illustrate some common exclusions in Life Insurance Policies.