Common Exclusions In A Life Insurance Policy

Every insurer provider has its own set of terms and conditions when it comes to life insurance plans. There are certain scenarios where things do not work simply and straightforwardly and the insurance company might deny your claims. This is why the life assured and their nominees should know the terms and conditions as given in the life insurance plan as given in the policy documents. Certain generic exclusions are applicable almost across every insurer’s life insurance plans. 

Common Exclusions Under A Life Insurance Plan in 2024

Here's a list of exclusions that are almost common to almost all life insurance plans:

1. Exclusions in Accidental Death

Although accidental deaths are covered in most of the life insurance policies, there might be a few cases wherein the Insurance company might defer the claim. Usually, in cases of accidental deaths, every insurance company investigates the death from its end and has a designated term of healthcare professionals for the process.

2. Exclusions Due To Lifestyle

Smokers have lower mortality rates when compared to non-smokers and that is why the latter are put in the high-risk category, which adversely impacts their premium rates too. Thus, insurance providers have the right to deny the claim if the policyholder dies due to smoking and has failed to mention the same at the time of filling out the form.

3. Exclusions In Suicidal Deaths Or Self-inflicted Injury

Suicide is almost on every life insurance policy's exclusion list. If the policyholder commits suicide within one year of the purchase of the policy, no compensation will be paid to the family. However, some Insurance providers return the entire premium paid by the insurer after deducting the medical and administrative expenses and any other expenses mentioned in the policy. 

4. Pre-existing medical conditions

All life insurance plans are assigned waiting periods for different critical illnesses before they can be covered. Ideally, the waiting period is something between 3 months to 4 years. 

5. Death Due To Involvements In Criminal Activities

Life insurance policies don't cover risks that arise from participating in illegal activities or riots. The nature of term in or any other life insurance policy is to cover risks that are unexpected and accidental. Therefore, involvement in such activities proves the policyholder's intent to be exposed to greater risks. 

Closing Thoughts

Therefore, it is crucial to understand the features and benefits of a life insurance plan thoroughly. Even though it's a bit tedious to go through every mentioned inclusion, the initial effort will help the family members at the time of claim submission. 

Also Read:

A Detailed Comparisons Between Whole Life And Term Life Insurance Policies

How To Avoid Life Insurance Claim Rejections?

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