Refers to specific conditions, circumstances, or events that a life insurance company will not cover. Exclusions are typically made on a case-by-case basis by the underwriter, but may also be part of the standard contract (i.e. a 2-year suicide exclusion for life policies).
Some examples of exclusions include:
- Acts of war
- Suicide
- Skydiving
- Military or combat flying
- Race car driving
- Hang-gliding
- Pre-existing medical conditions that might negatively impact mortality or morbidity
- Dangerous activities
Death claims related to a policy exclusion will not be paid by the life insurance company. Instead, the insurer may opt to refund the beneficiaries the premiums paid by the policyholder.
« Back to Glossary Index