6 Common Exclusions and Limitations in a Life Insurance Contract

Have you read the fine print of your life insurance contract? They say, the devil is in the details.

According to mtherald.com, "As in all important documents, the full understanding of what is contained in the fine print of a life insurance policy is a necessity, if you don’t want to fool both yourself and your dependents that you are adequately covered, only to leave heartbreak behind if you should die and your insurance company refuses to pay up because of an exclusion you weren’t aware of, or didn’t fully understand."

In general, you should ask questions like, "If my husband goes off to war and something happens, is he covered?"  Or, "If I die from a drug related activity or a dangerous activity, am I covered?"  Also, "If one of us decides to commit suicide, will the policy cover me?"  Unfortunately, not all contracts are the same and in fact, a majority of policies don't cover these exclusions.  You should make sure your policy actually covers what you thought it would.

Here are six common exclusions found in shady life insurance contracts:

1. Illegal activity
2. Drug abuse
3. Act of war
4. Dangerous activity
5. Aviation exclusion
6. Suicide

Did you learn something new?  Which exclusions did you find in your policy?  Did you apply the knowledge you obtained and then take action to fix the problem? Did you know not all term life insurance contracts were equal? Did you know that you shouldn't shop solely based on price alone?

This post was reposted from http://finlit.biz/life-insurance/6-common-exclusions-and-limitations-in-a-life-insurance-contract/, originally written on February 23rd, 2013.