Here Is What Life Insurance Excludes

Posted At December 26th, 2018

The main purpose of purchasing a life insurance policy is to receive the promised compensation fund. This serves as a step of anticipation should anything unwanted were to happen in the future such as loss of income or death.

Terms & Conditions of Exclusions

It is true that life insurance policy states that in the event of death of the insured, then a certain amount of compensation will be given to the heir as promised. However, surely there are terms and conditions in effect in an insurance policy.

In a life insurance policy, there is one important part; the exclusions clause. Exclusions contain all things and risks that are not covered by the insurance and are clearly listed in the policy.

Here are some of the things generally excluded in a life insurance policy.

Exclusions in Term Life Insurance Policy

The exclusions in this type of insurance is the death due to the following causes.

  1. Suicide
  2. Death penalty verdict by court
  3. Involvement in crime
  4. Intentional murder by a party who have an interest in the compensation
  5. HIV/AIDS (during the first two years)
  6. High risk occupation such as military agency, fire department, mining, etc. (unless stated otherwise).

Exclusions in a Life Insurance Policy Combined with Personal Accident Insurance

The exclusions in this type of insurance policy include death due to the following reasons.

  1. Involvement in a fight, except in the case of self-defense
  2. Crime committed by the person having an interest in the policy, for example the insured or the heir
  3. Accident of airline with irregular flight schedule
  4. High risk occupation such as military agency, fire department, mining, etc. (unless stated otherwise)
  5. Dangerous sport or hobby such as car racing, rafting, mountain climbing, boxing, wrestling, gliding, horseback racing, etc. (unless stated otherwise)
  6. Accidents due to mental illness, illness attacking the nervous system, drunkenness, usage of narcotics or illegal drugs, etc.
  7. For permanent total disability only – any illness suffered from before the insurance protection starts which could cause permanent total disability.

Exclusions in Life Insurance Policy Combined with Health Insurance

Generally, exclusions in this type of insurance policy include death due to critical illness (CI or CI100), such as:

  1. Any illness caused by intentional wound, for example from a suicide attempt
  2. Any illness caused by HIV / AIDS, directly or indirectly
  3. Any congenital illness
  4. Any pre-existing illness, condition or wound
  5. Critical illness diagnosed during the elimination period (up to 90 days from the effective date of the insurance, or the recovery period)
  6. Under the influence of or involved in the use of narcotics or alcohol.

Your also need to know that death due to a terrorist attack is still excluded in most life insurance policies.

Back to the Policy!

When purchasing a life insurance, pay attention to all the terms and conditions carefully. It is important that you know and understand the exclusion conditions in your life insurance policy. This way you can avoid having your insurance claim rejected in the future.

The benefit if the free look period is given to study your life insurance and to ask your insurance company if there is anything you do not understand.

Read your insurance policy beforehand!


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