All life insurance policies have exclusions and understanding them can help protect you against a denied claim.
We’ve all got a friend with a negative insurance story. Like Dave from the office. He wrote off his bakkie in an accident then got upset when his insurance company wouldn’t accept his claim as he’d been over the blood alcohol limit while driving. While Dave’s lucky to be alive, being out of pocket after an accident is a situation nobody wants to find themselves in. However, if he’d read his policy’s terms and conditions, he’d have known about its exclusions and might have made different choices.
Know your life insurance policy’s exclusions
Life insurance policies are much like any other type of insurance policy in that they also contain exclusions – provision referring to perils, hazards, circumstances and activities not covered by the policy. Making yourself familiar with any exclusions is crucial because nobody wants to spend their literal lifetime paying premiums only to have their beneficiaries denied their lump sum payout due to a choice that undermined their policy.
What are typical exclusions in life insurance policies?
Life insurance policy exclusions may differ depending on the insurer you buy it from. However, they typically relate to claims events arising from having engaged in an illegal activity or risky behavior.
If you have a life insurance policy with MiWayLife you’ll get to read your policy in full before you agree to buying it. But to give you an idea, our exclusions include claims events that arise from traveling to a list of countries known to be dangerous, such as Afghanistan and Iraq. Your policy also won’t provide cover for a list of risky activities such as cave diving, solo mountaineering, helicopter flying and professional boxing.
Other circumstance that could see your claim denied include taking unprescribed medication or illegal drugs and yes – just like Dave’s car insurer, we also deny claims that arise from the policy holder driving drunk. Also, a word about suicide – many think that if someone takes their own life that their life insurance policy claim will be rejected but this isn’t always the case, but you can expect limitations. As an example, MiWayLife will not admit a claim if the policy holder passes away by suicide within the first 24 months from the policy’s start date.
Knowing about exclusions means ultimate peace of mind
At the end of the day, if you’re going to make a smart choice and invest in a life insurance policy, it’s even wiser to always read its terms and conditions. This way, you’ll be fully aware of any exclusions and can move forward accordingly. This might mean you’d have to swap out cliff jumping for golf, but nothing beats enjoying peace of mind.
Did you know:
You can now take out life cover with us online in a few simple steps. No calls and no agents! Make sure to take care of those you love today by buying MiWayLife cover online.
