Life Insurance - When Doesn’t It Pay & For What Reason?

What could be some of the exclusions for when a life insurance company won’t pay a claim?

Well it really depends on which state you live in, your life insurance company policies, and more specifically what your individual policy states in writing. Generally older policies may have had more exclusions then some of the newer policies but again it depends on what your specific policy states, so be sure to read it.

In many cases (individual states can differ) there is a two year incontestability provision in which the insurance company may contest your insurance benefits claim based on a material misrepresentation made by you and used by the insurance company to determine your insurability.

Some of the most common exclusions depending on your policy could be:

  • Suicide clause (Generally only with a 2 year waiting period from the start of the policy)
  • Dangerous activity (if not stated in the application, such as auto racing, scuba diving, etc.)
  • Aviation exclusion (Generally will only pay if insured is killed in a commercial plane crash as a passenger. Not flying as a pilot, unless stated in the original application with most likely a higher premium if approved.)
  • Act of war exclusion (Depending on the insurance company and specific policy)
  • Depending on the circumstances and the actual policy, other exclusions could include:
    Drug or Alcohol abuse, participation in illegal tasks, etc. 

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Note: Life Insurance information can be confusing to many people. As an "independent licensed agent" I can explain things to you in simple terms so you feel comfortable making a decision. Then I can help you choose a life insurance policy, from many choices of different insurance companies, that you feel fits your needs. Plus if you choose to work with me you will have personalized service by a local agent that can shop premium quotes for you. If you would like my assistance to discuss and/or start the process of getting you insured please call me at 941-404-5334.