Click to CallUnderstanding policy limits for life insurance can sometimes be challenging if you’re not familiar with the type of policy you have. If you already have a life insurance policy or are considering purchasing one, it’s important to be aware of all the exclusions. At Birdsong Agency Inc. in Snellville, GA, we help guide you through the various life insurance policies and their exclusions.
What Exclusions Do Life Insurance Policies Have?
Exclusions are clauses in life insurance policies that exempt you from receiving a payout. Many life insurance policies have specific exclusions, but these may vary from company to company. Here are some of the common life insurance policy exclusions:
- Suicide – Many policies exclude suicide, but some may have a timeframe of two years before the policy is eligible for a payout.
- Military – Death while serving in the military is often excluded or has limited coverage.
- Illegal Activities – Deaths that result from illegal activities are not covered under any circumstances.
- Hazardous jobs – Jobs that involve high risk are either limited or excluded from plans.
- Substance Abuse – Death due to an overdose is not eligible for life insurance policy payouts.
- Risky hobbies – Those with risky hobbies that could result in death are limited or excluded from life insurance policies.
- Pre-existing Conditions – Some life insurance policies will not accept death resulting from pre-existing conditions.
How to Avoid Exclusions
Be sure to carefully read through your entire policy, as it can help save you from a costly mistake. In addition, consulting an agent, such as one of our professionals at Birdsong Agency Inc. in Snellville, GA, can help you find a policy that works for you. If you don’t find a life insurance policy that suits your needs, you can alternatively check different agencies, as some may cover certain exclusions.
