Life insurance policies also include provisions and exclusions to protect the insurer in the event of likely death or illegal activity that might affect a life insurance policy’s proceeds.
The following are a few common life policy exclusions:
- False pretense or information provided on the application for life insurance with the intent to deceive and defraud the insurer
- If the policyowner dies as a result of a felonious act (death occurring while committing a crime, NOT the victim of a crime), death benefits will not be given to a beneficiary
- Private aviation (flying a private airplane) is often excluded due to the elevated risk level associated with such profession or hobby. This exclusion normally pertains to private aviation, and not if death occurs during commercial aviation, such as being a passenger on a commercial airline
- Hazardous occupations or hobbies that are considered dangerous, such as structural metal workers, miners, heavy-equipment operators, stuntmen, race car drivers and other ‘hazardous’ occupations or hobbies are usually excluded from applying for coverage, though employers of these occupations often provide special protection for their employees
- Death resulting from military service is typically excluded from coverage. Death benefits will not be paid if the policyowner’s death is the result of participation in war. Military personnel receive governmental coverage under the rules and regulations of the U.S. military
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