Term Life Policy Exclusions

All insurance polices have exclusions, your car insurance policy probably has a age exclusion and an exclusion against taking your car into any foreign country without notifying the insurance company. Term life policies are no different , apart from when your family claim and then find you were not covered it will be a lot more financially disastrous than having a car stolen when it is not insured. Most term life policy exclusions will make sense when we explain them.

Dangerous Activities
Do you think rock climbing is the best exercise ever, maybe you enjoy sky diving on your birthday? If you die doing any number of activities that are considered to be dangerous by the insurance company you stand a good chance of not being covered. You may thing that riding quads round the local hills and mountains for 3 or 4 days at a time is great fun, there is a good chance that your insurance company would think it was an uneccerssary risk and would not cover it. Having seen the results of accidents on off road bikes this is one of the term life policy exclusions I understand 100% and agree with.

If you do take part in anything that is even near the mark of what is safe and what is not then you need to tell your life policy provider before you buy a policy. If you are already covered then you should tell the company before you go and start the activity.

Aviation Policy Exclusion
If you own a private plane or you go in private air craft then you should speak to your policy provider as private aircraft are normally one of the main exclusions from any life policy. All insurance is based on statistical probability and since there is no way to know how much experience the pilot of your private plane has or what condition the plane is in companies generally just exclude all flights taken in private planes.

War
If your death is the result of a act of war then you are not covered. I would assume that if you were a photographer or reporter whose job took you to war zones you would have a separate policy issued by your employers. If you do go into a war zone without any kind of policy I have a question for you, Why?

Suicide Clause In Life Insurance Policy
This is the life insurance policy clause that is the best known and most heard about. People get themselves into dire financial positions and when they can not think of any way out they take out a life policy and commit suicide. Their family get paid and they can clear off the debts. That is the theory, the truth is that there is a two year exclusion, so you must have had your life insurance for at least two years and you must have paid your premiums for that whole time.

Increased Premiums
If you do a sport that may be considered dangerous or fly in private planes then you should speak to the company that cover you as they will almost certainly cover you for an increased premium. They won’t change the suicide clause and covering you in a war zone is not something that the normal term life policy provider would even look at, but for sports or hobbies that are outside the norm they can probably still work out the risk factor and that is what will decide the premium you pay.

Be honest from day one with whichever insurance company you deal with as there is no point paying for a policy which won’t pay out because you forgot to mention that you go skydiiving every month or so. Every insurance policy has term life policy exclusions and it is best to learn about them before you start paying for the policy