General Exclusions Of Life Insurance

Life insurance is a contract between the insurance provider and the life assured, wherein the insurance provider provides life cover to the life assured in exchange for premiums. In case of an unforeseen demise of the life assured during the policy term, the insurance company will provide a death benefit to the nominee. 

There are certain situations which are not covered under a life insurance policy, to maintain a balance, and to ensure that something does not happen deliberately for claims. Every life insurance company has laid down a list of exclusions which are the situations that are not covered under the policy. In case the life assured passes away under such circumstances which are not covered under the life insurance policy, the insurance provider can reject the claim. 

General Exclusions Under Life Insurance Policy

There are several instances that are not which are not covered under a life insurance plan. Below mentioned are some of those instances:

1. Dangerous Activities

Activities which include high life risk are not covered under a life insurance policy. Participating in dangerous activities such as skydiving, paragliding, rock climbing, diving, motor racing, mount climbing etc. are considered dangerous and death caused by participating in such activities will not be compensated for.

2. Pre-existing Medical Conditions

Diseases which the life assured has been suffering from, prior to the purchase of the life insurance policy will not be covered under the life insurance policy. Pre-existing medical conditions and death due to pre-existing medical conditions will not be compensated for.

3. Maternity Issues

Death of the life assured due pregnancy complications or death while childbirth will be covered under the life insurance policy.

4. Death Caused by Aviation

In case the life assured passes away in an air crash while travelling on private plan, will not be covered by the life insurance company. In case the life assured has passed away in an air crash while travelling in a commercial airline, the insurance company may provide death benefit.

5. Participation in Illegal Activities

Participation in activities such as consumption of drugs, driving under the influence, illegal protests, and other unlawful activities will not be covered under a life insurance policy. In case of an unforeseen demise of the life assured by participating in unlawful activities is not covered under a life insurance policy.

6. Suicide

Suicide is generally not covered under not covered under most life insurancr policies. In case of death of the life assured due to committing suicide within 12 months from the date of policy issuance, the nominee may get 80% of the total premiums paid till the date of demise of the life assured. This exclusion depends on terms and conditions of the life insurance company. 

Conclusion

Considering all the aspects mentioned above, one can understand that life insurance is not to be taken lightly. Life insurance can be used to provide financial protection to you and your family in case an unfortunate event takes place. It is advised to read the policy documents carefully prior to the purchase to ensure what is covered under the life insurance policy of your choice. 

Also read - What Happens If You Lie On A Life Insurance?

Reasons You Need To Purchase Life Insurance

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.