The death benefit of the Life Insurance Policy ensures that your family is financially secure in the event of your demise. There can be instances, however, when your family’s life insurance claim can be denied.
· Non-disclosure of lifestyle habits
Smoking and drinking can cause long-term health issues. If you hide this fact from your insurer, your benefactors may be denied compensation.
· Death by suicide
Suicide is not covered in the policy. The suicide clause, ratified by many states, has been included as a deterrent to people from taking this step. Your family will receive only the amount you have paid as premiums and not the death benefit.
· High-risk activities
If you thrive on undertaking high risks, inform your insurance agent about it. It may result in higher policy costs but you will get full coverage. Else, if your death is caused while doing a high-risk activity you may deprive your family of the death benefits.
· Crime does not pay
If you are killed committing a felony, your family will be denied the death benefit. Indulging in criminal activities can also lead to canceling your life insurance policy.
· Insurance fraud
If you are exposed to high potential risks, you may have to pay higher premiums for comprehensive coverage. However, if you attempt to hide this fact from your insurer to enjoy lower policy rates, it is regarded as committing fraud. It may lead to the annulment of your policy or your family’s claim for death benefit can be denied.
· Visit war-ravaged zones
Act of War exclusion is for civilians who are sent to war-affected areas for job-related purposes or those who volunteer to visit such regions. In the event of your death there, your insurer may deny your family the death benefit.
· Relocating abroad
If you plan to relocate to another country, cashing your life insurance before moving is the best option. The death benefit may not be applicable for those without a valid American address.
The team at Reardon Agency helps you find the right coverage while informing you about the exclusions.
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