Life Insurance Policy: What’s not covered
A life insurance policy will not cover certain situations... For instance, lying on a life insurance application may result in your benefit not being paid out. Or, if an insurance consumer says they didn’t drink and smoke but was found to have been a heavy smoker and drinker, the death benefit may be withheld or greatly reduced. There is a contestability period, which states that if you die within the first two years of a policy being in force a lie can void your policy completely. Be honest when you apply for life insurance.
Suicide is one way a life insurance claim may be voided, especially if it falls within the first two years the policy is in force, during the contestability period. After that, most policies will pay out the benefit.
Soldiers deployed to combat zones are not covered by most term-life insurance policies. There are some term life insurance companies that do provide term life and disability insurance to soldiers who can’t buy from other reputable sources. These companies include the Servicemen’s Group Life Insurance program or the Army & Airforce Mutual Aid Association.
If you live abroad or are traveling abroad in the event of your death your insurer may not pay out the benefit. Also, if you have missing or foreign paperwork may cause a problem with you getting paid out. If the insured dies while abroad, the insurance needs to review certified translations of the paperwork.
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