Exclusions in Life Insurance Policies

These flashcards cover key concepts related to exclusions in life insurance policies, including types of exclusions, clauses, and definitions.

Exclusion

A provision in an insurance policy that specifies what is not covered.

Noncommercial aviation exclusion

Excludes coverage for deaths related to noncommercial flights.

Hazardous occupations exclusion

Excludes coverage for deaths resulting from dangerous jobs or hobbies.

Suicide clause

Specifies the initial period during which the death benefit is not paid if the insured dies by suicide.

Incontestability clause

A clause applying to the first couple of years of a policy, regarding claims that can be denied.

War and military service exclusion

Excludes coverage for deaths due to acts of war or during military service.

Two-year period

The common time frame during which payouts are restricted for suicide claims.

Premiums returned

If suicide occurs within the specified period, only premiums paid are refunded, not the death benefit.

Risky activities

Activities such as skydiving or bungee jumping that may lead to exclusion from coverage.

Specialized coverage

Additional insurance needed for high-risk occupations or activities.