Here are the main exclusions you should know
Life insurance policies have several advantages, but they also come with their own set of exclusions. It is very important to know these exclusions in order to avoid any unpleasant surprises during the claim process.
These exclusions may differ from one insurer to another.
However, there are a few common exclusions which are listed below:
According to Rakesh Goyal, director of Probus Insurance, deaths by suicide fall under the exclusions. However, some insurers extend coverage after one year from the date of the policy.
Life threatening activity
Death due to involvement in any kind of life threatening activity, or participation in any kind of criminal or illegal activity, is also considered an exclusion, Goyal said.
There are some insurers that do not cover death due to complications in pregnancy and childbirth.
No mention of pre-existing illness / habits
Many people tend not to mention their smoking habits in order to avoid higher premiums. That said, if claims are made after the death of the insured and this information was not disclosed initially, there is a very high probability that the claim will be dismissed, Goyal said.
“Likewise, if the insured fails to mention the details of a pre-existing condition he had when purchasing the policy, those claims could also be dismissed,” he said.
Aviation related loss
Participation in criminal / illegal acts
No insurance policy, sold by an insurer, will cover the risk posed by participation in illegal / criminal / illegal activities. This may include activities such as driving under the influence of alcohol, the consumption of intoxicants such as drugs or alcohol, injury or death caused by a car accident in which the insured was not wearing no seat belts or driving at high speed, participation in illegal demonstrations, etc., Bankbazaar mentioned.
War / war-related acts
According to this clause, if the insured died due to an act of war or any activity related to the war, the death benefit will not be paid.
In addition to the exclusions mentioned above, there may be other exclusions depending on the plan or the insurer. Thus, one should check his policy document well in advance to avoid confusion during the claims process.
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