We all know by now that life insurance covers you in the event of death, among other things, but what about what isn’t covered? If you own a policy, it’s worth knowing what your loved ones can and can’t claim for. In this guide, we’ll look at some of the most common exclusions for life insurance.
What do we mean by a life insurance exclusion?
As with any type of insurance product, there are certain limitations to the policy. An exclusion is the term used to describe specific situations, conditions, or causes of death that are not covered under a life insurance policy.
When an exclusion is in effect, the insurer will not pay out the death benefit if death occurs under such circumstances.
A full list of exclusions can typically be found in the policy document or contract, usually within a dedicated section that outlines the terms and conditions of your cover.
Common life insurance exclusions
Non-disclosure or misrepresentation
When you apply for life insurance, you must provide honest and accurate information, even if that means paying more for cover. For example, if you suffer from a medical condition, you must disclose it, otherwise, your claim could be denied, especially if the condition contributes to the cause of death.
Life insurance companies may access your medical records when carrying out an investigation following a claim. If inconsistencies or omissions are found in your application, they can use this as grounds to deny a payout.
Make sure you disclose all relevant information, including lifestyle habits such as smoking or alcohol use, existing illnesses, and family medical history, during the application process.
If it’s an unintentional oversight, you may be able to amend your information and adjust the policy terms. However, deliberate misrepresentation is often met with policy cancellation or claims denial.
Death by suicide within the contestability period
Most policies include a suicide clause. If the policyholder dies by suicide within the first 12–24 months of the policy, the insurer may not pay out. This is known as the contestability period.
This exclusion exists to prevent people from purchasing life insurance with the intention of committing suicide shortly after the policy is in place. After the contestability period, suicide may be covered, depending on the specific terms of the policy.
Death outside the policy term
Policies like term life insurance cover you for a set amount of time, typically somewhere between 5-55 years. The policy pays out if you die within the agreed term; if not, it expires, and no payout is made.
If you were to die outside the policy term, your family would be unable to make a claim on your policy. This is where whole life insurance may be a better option. It has no expiry date, paying out regardless of when you die, though premiums tend to be more expensive.
Death due to drug or alcohol abuse
Claims may be rejected if death is linked to alcohol or illegal drug use, particularly if it contributed to risky behaviour or an overdose. If you have a history of drug or alcohol abuse, a waiting period may apply before you can be accepted for cover.
While you may be tempted to hide such information, your insurer will likely be able to find out through medical records, reports from the coroner, or other methods following a death. That’s why you should be honest about any information you provide so you can keep your policy in place without jeopardising your beneficiaries.
Participating in dangerous activities
Most standard life insurance policies do not automatically cover deaths resulting from hazardous hobbies or high-risk occupations (e.g. skydiving, rock climbing, scuba diving, motorsports, or military service).
These are often treated as exclusions unless you’ve disclosed them during your application and the insurer has agreed to include them, potentially at a higher premium.
If you take part in such activities without declaring them, your policy could be voided, or the insurer may refuse to pay out a claim if your death is related to that activity.
Criminal activity
Most life insurance policies include an exclusion for deaths that occur as a direct result of involvement in criminal activity. This means that if someone dies while committing or attempting to commit a crime, the insurer may not pay out on the policy.
This exclusion is in place because such situations are considered high-risk and preventable, and insurers typically include clauses to limit liability in those circumstances.
Travel to high-risk countries
Your insurer will not be liable for any claims if you die after knowingly travelling to a country deemed high-risk. The UK Government maintains a list of such countries based on factors including political instability, armed conflict, disease outbreaks, and other safety concerns.
If you’re travelling abroad, you can check the Government’s foreign travel advice to see whether your destination has any travel advisories or warnings that might affect your policy.
Pre-existing medical conditions
If you have been diagnosed with a pre-existing medical condition prior to applying for life insurance, you need to tell the insurer. This includes any health problem you were already aware of before your policy started, such as heart disease, cancer, diabetes and mental health.
Though your premiums may be increased by telling the truth, it’s better than your family being denied a claim.
Where to get advice
If you’re applying for life insurance but are unsure about what you need to disclose, there are plenty of advisors out there that can help. Simply find one that’s suitable and get in touch with them about any questions or concerns you may have.
