Know the key facts that can lead to a decline of your life insurance claim.

What is a life insurance exclusions. Exclusions can be defined as events and conditions which. What are insurance exclusions. Think of the following example.

Suicide - Most life insurance policies list suicide as an exclusion. Exclusions are events or situations that if they result in the death of the policyholder are not covered by a Life Insurance policy. The most common life insurance exclusions are.

Insurance companies limit their risk by the use of exclusions and other terms in the insurance contract. Are there any limitations or exclusions to the Term Life Insurance plan. If the insured commits suicide after two years the life insurance policy will pay out.

A life insurance exclusion is a situation or circumstance that prevents your beneficiaries from receiving your death benefit. However beneficiaries may receive a refund of the premiums that have been paid. These clauses can be written very broadly which can create problems for beneficiaries because life insurance companies may try to contest claims if any substance was involved with the insureds death in any way.

You as the buyer must ask questions to your respective agent or insurer to avoid any frustrations later. Life insurance policies often exclude deaths caused by substance abuse because they are deemed self-inflicted. Some insurers may exclude people from cover in certain circumstances if they are deemed to present too great a risk.

Other exclusions include drug or alcohol abuse participation in illegal tasks etc. Heres a list of the general exclusions in life insurance. Grace period provision ownership clause change of plan provision incontestability clause and a reinstatement clause.