What exclusions exist in life insurance policies?

When you buy life insurance, you expect your loved ones to receive the death benefit no matter what happens to you. And in most cases, they will. But understanding policy exclusions—the specific circumstances under which your policy won't pay out—is crucial to making sure your family has the protection you think they do.

The good news? Policy exclusions are typically limited, clearly defined, and exist for very specific reasons. Let's break down exactly what's excluded, why, and what you need to know to avoid any surprises.

The suicide clause: Understanding the two-year rule

Nearly all life insurance policies include a suicide exclusion during the first two years of coverage. This is the most common exclusion you'll encounter, and it's important to understand how it works.

What it means: If the insured person dies by suicide within the first two years of the policy (sometimes called the "contestability period" for this clause), the insurance company typically won't pay the full death benefit. Instead, they'll usually return the premiums paid.

Why it exists: This clause exists to prevent someone in crisis from purchasing a large policy with the intention of immediately ending their life to benefit their family. It's designed to protect the insurance pool while still providing some benefit to the family.

After two years: Once the policy has been in force for two years, death by suicide is covered just like any other covered cause of death. The full death benefit is paid to your beneficiaries.

Important note: If you're struggling with mental health, please reach out for help. The National Suicide Prevention Lifeline is available 24/7 at 988.

The contestability period: When insurers can investigate

The first two years of any life insurance policy are known as the "contestability period." During this time, the insurance company has the right to investigate your application if you die and deny the claim if they discover material misrepresentations.

What can be contested: If you provided false information or omitted important details on your application—like failing to disclose a serious medical condition, smoking status, or dangerous hobbies—the insurer can contest the claim.

What they're looking for: The misrepresentation must be "material," meaning it would have affected the insurer's decision to offer coverage or the premium they charged. Forgetting to mention that you take vitamins won't matter, but failing to disclose that you're being treated for heart disease absolutely will.

After two years: Once the contestability period ends, the policy generally becomes "incontestable." The insurer must pay the claim even if they later discover misrepresentations on your application, with very limited exceptions (like fraud).

How to protect yourself: Be completely honest on your application. If you're unsure whether to disclose something, disclose it. It's far better to pay a slightly higher premium or even be declined for coverage than to leave your family without benefits when they need them most.

Criminal activity and illegal acts

Most life insurance policies exclude coverage for deaths that occur while committing or fleeing from a felony. The specific language varies by policy and state, but the principle is consistent.

What's typically excluded:

• Death occurring during the commission of a crime
• Death while fleeing from law enforcement
• Death resulting from illegal drug use (in some policies)
• Death while driving under the influence (in some policies)

Important distinctions: Not all policies exclude DUI-related deaths, and laws vary by state. Some policies cover overdose deaths, while others have specific exclusions for illegal substance use. The trend in the industry is toward covering addiction-related deaths, recognizing substance abuse as a medical condition rather than purely criminal behavior.

What's NOT excluded: Being a victim of a crime is never excluded. If you're harmed by someone else's criminal activity, your policy covers that death completely.

War and aviation exclusions

Depending on your policy, there may be exclusions related to acts of war or certain aviation activities.

War exclusions: Some policies exclude death resulting from acts of war, whether declared or undeclared. This typically applies to military combat situations. However, many modern policies have removed or limited these exclusions, especially for U.S. military personnel serving in recognized combat zones.

Aviation exclusions: Commercial aviation is almost always covered. If you die in a commercial airline crash, your policy pays. However, some policies exclude or limit coverage for:

• Private pilot operations (flying small aircraft)
• Military aviation
• Aviation crew members
• Experimental aircraft

Many insurers have relaxed these exclusions or offer coverage for private pilots with appropriate ratings, though sometimes at higher premiums.

High-risk activities and dangerous hobbies

Some policies include exclusions or limitations for deaths resulting from particularly dangerous activities. These vary widely by insurer and are becoming less common as underwriting becomes more sophisticated.

Activities that might be excluded or rated:

• Skydiving or BASE jumping
• Rock climbing or mountaineering
• Scuba diving (especially deep or cave diving)
• Racing (auto, motorcycle, boat)
• Hang gliding or paragliding

The modern approach: Rather than blanket exclusions, many insurers now handle high-risk hobbies through premium ratings or participation limits. For instance, recreational skydiving might result in a small premium increase rather than an exclusion.

Disclosure is key: If you participate in high-risk activities, disclose them on your application. Your insurer may offer coverage with specific terms, which is far better than having a claim denied later for disqualifying activities.

Does term life cover accidental death?

Yes—and this is a common point of confusion. Standard term life insurance covers virtually all accidental deaths, including:

• Car accidents
• Falls
• Drowning
• Fires
• Poisoning
• Medical complications

Accidental death coverage is included in your term life policy without any additional cost. You don't need a separate accidental death policy in most cases—your term life policy already provides this protection, subject only to the standard exclusions we've discussed.

The only exceptions would be accidental deaths that fall under one of the specific exclusions mentioned above (suicide within two years, deaths during criminal activity, or specifically excluded high-risk activities if applicable to your policy).

Real scenarios: When exclusions matter

Case 1 - Contestability period discovery: Robert applied for a $1 million policy and failed to mention his Type 2 diabetes diagnosis from three years earlier. He died in a car accident 18 months after his policy began. During the investigation, the insurer discovered the omission. Because he died within the contestability period and the diabetes was material (it would have affected his premium or insurability), the claim was denied, and only his premiums were returned.

Case 2 - Suicide clause timing: Jennifer struggled with depression and purchased life insurance while in treatment. Tragically, she died by suicide 26 months after her policy began. Because her death occurred after the two-year suicide exclusion period, her beneficiaries received the full death benefit.

Case 3 - Honest disclosure of high-risk hobby: Marcus was an avid rock climber who fully disclosed his hobby on his application. His insurer offered him coverage with a modest premium increase but no exclusions. When he died in a climbing accident three years later, his family received the full benefit without any issues because he'd been completely transparent.

The Evoro Life approach to exclusions

At Evoro Life, we believe in transparency and fairness. Our policies include only the standard exclusions required by law and industry practice:

What we exclude:

• Suicide within the first two years (with return of premiums)
• Material misrepresentations during the contestability period

What we DON'T exclude:

• Accidental deaths of any type (subject to standard exclusions)
• Most pre-existing conditions (we price them in, not exclude them)
• Common hobbies and activities
• Travel to most international destinations

We price our policies based on accurate risk assessment, which means we'd rather charge a fair premium for your actual risk level than surprise you or your family with hidden exclusions later.

Reading your policy documents

When you receive your policy, take time to read the entire document, paying special attention to:

The exclusions section: Usually clearly labeled and written in plain language. If you see anything you don't understand, call your agent or insurer immediately.

State-specific provisions: Some states require certain provisions or prohibit certain exclusions. Your policy will reflect your state's laws.

Any riders or amendments: Additional coverage or modifications to your base policy may have their own exclusion provisions.

Don't wait until a claim situation to discover what's not covered. Read your policy now, ask questions, and make sure it provides the protection you need.

The bottom line

Life insurance policy exclusions are limited and exist for specific, understandable reasons. The vast majority of deaths—including accidents, illnesses, and natural causes—are fully covered from day one of your policy.

The keys to avoiding problems:

1. Be completely honest on your application

2. Disclose all material health conditions and risky activities

3. Read your policy when you receive it

4. Survive the first two years of your policy (when contestability and suicide clauses apply)

5. Keep your policy in force by paying premiums

If you understand your policy's exclusions and you've been honest from the start, you can have complete confidence that your family will be protected no matter what happens.

Get your quote in 18 minutes