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What Kind of Deaths are Not Covered by Life Insurance Policies

Not All Deaths Are Covered by Life Insurance Policies

The Internet makes its easy these days to get a free term life insurance quote or a life insurance quotation. This article looks at the differences between term life insurance and whole life insurance, as well as what types of deaths are not covered in the typical policy.

Term Life Insurance vs. Whole Life Insurance

Term life insurance is considered the simplest and most economical form of life insurance because the policy holder selects a specific length of time for the insurance to remain in effect, the simplest form being for one year. If the insured dies during that period, the benefit will be paid to the beneficiary. However, if the insured outlives the period specified, even for just one day, no benefits are paid.

Term life insurance is affordable and inexpensive when compared to other types of insurance (you can take advantage of available free life insurance quotes online) because, on average, the likelihood of the insured dying during the period of coverage is relatively low, whereas the likelihood of the insured dying under a whole life insurance policy is 100%.

Types of Death Usually Excluded

Suicide

Typical insurance policies carry a suicide clause which stipulates a specified period of time, usually one to two years, during which benefits are not paid out if the insured commits suicide.

Death as a result of war

Also insurance companies usually don t pay if the insured is a victim of war or war-related activities. As with the suicide clause, the insurance company will only pay to the beneficiary the amount of the premiums paid out.

The aviation exclusion

This clause states that if the insured s death occurs while riding in a private aircraft, the policy will not be paid to the beneficiary. This clause does not apply to passengers in commercial aircraft.

Death due to dangerous activities

The final exclusion found in the typical insurance policy concerns death as a result of engaging in a dangerous activity such as rock-climbing, auto racing or hang-gliding, to name a few. People who participate in such activities on a regular basis can get coverage by paying a higher premium.

Both a free term life insurance quote and a life insurance quotation will provide those seeking information the exclusions that are typically included in insurance policies, namely death by suicide, death due to war or other dangerous activities or death due to a private aircraft disaster.

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