Are Causes of Death That Aren’t Covered Under Life Insurance? 

Life insurance policies are designed to take care of your loved ones if you’re not longer around to take care of them. There are many types of life insurance policies, so it’s important to make sure to pick the right one for your family’s needs. 

Unfortunately, no matter what policy you pick, it may be subject to the same exclusions as the others. 

There are certain incidents in which a life insurance claim may be denied. One of those reasons is the cause of death. Certain causes of death for the policy holder are not covered under life insurance for one reason or another. Generally, life insurance covers death by natural causes and exempts many other types of death. 

Common death exclusions include: 

Murder 

A life insurance claim may be denied if the policyholder is murdered if they are murdered while committing criminal activity or have a criminal record. If the criminal record is not related to the cause of death—such as, if the policyholder has a criminal record but passes due to natural causes—then the life insurance claim should be accepted. 

Another reason for rejection would be if one or more of the beneficiaries is accused of involvement in the crime. Until they are cleared, the beneficiary will not receive payment from the life insurance claim. 

Death Due to Undisclosed Habits 

When purchasing a life insurance policy, an insurance provider will conduct a health exam and ask certain questions. One of the main questions they will ask is about the use of cigarettes or tobacco, because this use can have great affect on your health and cause shorter lifespans. If the policyholder passes away due to smoke-related health complications, the life insurance claim is likely to be denied. 

A claim can also be denied if the policyholder passes away while under the influence of alcohol or narcotics. 

Suicide 

Suicide is slightly more complicated when it comes to life insurance. Generally, there is a waiting period in which, if the policyholder dies by suicide after purchasing the life insurance policy, any life insurance claim will be denied. This time frame is usually one to two years after the purchase of the life insurance policy. If the policyholder dies by suicide outside of this probationary term, it’s still possible a claim can be denied.  

Be sure to speak with a life insurance professional about the limitations on your life insurance policy. 

 

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