Exclusions in Life Insurance Policies
Life insurance policies are essentially contracts that are provided to cover for any risks to life of the insured person by the insurance providing company. The insured individual has to pay a certain sum of money till the time of her/his death. On her/his untimely demise the amount so accumulated gets transferred to the nominee. However, like every policy, life insurance too comes with its own set of riders as not every incident leading up to the death is covered.
Some of these exclusions are as follows -
Accidental deaths are covered but not those which are covered owing to adventure sports such as motor races, skydiving, rock climbing, paragliding etc. This is because the policyholder does not take the necessary precautions to eliminate all the risks and she/he knows that such activities might result in death. These days, however, some life insurance providers have started providing cover but the premium in such cases is quite high.
There are some medical checks which are conducted when a policy is issued. Apart from these, insurance companies also ask the applicant whether she/he has any drinking or smoking habits. This is because these two kinds of people have a much higher fatality rate and are thus charged a higher premium for their policies. Thus, if you do not disclose that you are regular drinker or smoker, then at the time of your death, the insurer has the right not to pass on the benefits to the nominee.
Deaths due to plane crashes when traveling on a private plane is not covered by insurance companies. However, if the same journey is made using a commercial flight with a proper ticket, then the crash is covered by insurance companies.
Read Also: Common Exclusions in Life Insurance Policies
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