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Life Insurance – Be Clear On What Is And What Is NOT Covered

When you are taking out life insurance it is just as important to be clear on what IS NOT covered by your policy as it is to be clear on what IS covered. With this is mind it is of paramount importance that you read the small print in detail so that you fully understand any and all of the exclusions that may apply to your policy.

Below are just some of the exclusions that can be found in life insurance policies;

  • Very often life insurance companies will turn down your application if you work in an industry that they deem to be “high risk” – for example if you were in the armed forces or certain branches of the construction industry.
  • Your application may also be turned down if you partake in high risk activities such as mountaineering or rally driving.
  • If you your medical history has several serious problems such as cancer or on-going problems with your blood pressure then many life insurance companies may not offer you cover.
  • Many insurance companies will not offer you life insurance if you are a long term heavy smoker or if you are morbidly obese.
  • Some insurance companies extend their exemption to not offering cover to those over 60 years of age regardless of health and lifestyle.

However – this list of potential exclusions should not put you off looking for life insurance as there are many insurance companies who offer very tailored policies to fit very specific needs. So even if one of the exclusions listed above applies to you, with a bit of searching, you should be able to find a competitively priced life insurance policy that meets your needs.

Life Insurance Pay Out Exclusions

With life insurance policies exclusion apply not only at the point at which you are considering taking out a potential policy, but also at the point of pay out in the event of your death. Some life insurance policies will not pay out in the following circumstances:

  • If the policy holders death was the result of drink or drug abuse.
  • If the policy holders death was the result of an act of war of terrorism.
  • If the policy holders death was in fact suicide.
  • If the policy holders death was the result of recklessness or negligence on their own part.

However – the majority of life insurance claims do pay out, these are just points to be aware of.