When you apply for a life insurance policy, the company will ask you a variety questions about your medical history, avocations and travel. If any of these items in your history are deemed risky, the company will most likely rate your policy—they will NOT add an exclusion.
Life insurance does not exclude conditions, avocations, travel or the like the way that disability insurance does.
For example, I recently had a client apply for both life and disability insurance and he was in the process of getting his pilot’s license. The disability insurance carrier put an exclusion on his policy for flying. If he became disabled when flying a plane, they would not pay that claim. The life insurance came back with a standard risk class with an additional $3 per $1000 of coverage based on his risk.
Suicide is typically excluded from life insurance if it occurs in the first year or two, depending on your state of residence. After that period of time, suicide is covered.
Companies also reserve the right to deny a claim during an act of war or if you were committing a felony when the claim occurred. If there is an investigation of fraud or foul play, there may be an investigation.
So what are some of the riskiest items that could cause a rating?
- Piloting an aircraft
- History of suicide attempts
- Travelling to a “high risk” zone (there is a list of countries deemed dangerous)
- Extreme rock climbing
- Scuba diving
- Motor vehicle racing or motorcycle racing
- History of substance abuse
For more information about disability insurance, life insurance, exclusions, ratings, avocations, travel, etc… or to request a quote comparison, contact Set for Life Insurance today!