As with any other kind of insurance, there are limitations to what you can and can’t do with the life insurance policy. These are limits are called exclusions and provisions, and these limitations control how you use your policy. There are several general provisions in life insurance policies, including a grace period, ownership clause, an incontestability clause, a change pf plan provision and a reinstatement clause.
The dangerous activity provision/exclusion states that there will be no payment if the policyholder dies while participating in certain activities, such as auto racing, hang-gliding and/or rock-climbing. These exclusions are a little more rare, however, as most companies will cover you at a higher premium rate if you regularly participate in these types of activities. This dangerous activity clause/provision could also include such things are military, war zone and/or certain law enforcement.
Some other types of dangerous activities include aviation involvement. This could be an exclusion from your life insurance policy and the policy usually states that it will not pay if the policyholder dies in a private plane crash and not as a passenger on a commercial flight. Likewise, the war exclusion states that the policy will not pay in the event the policyholder’s death occurs as the result of a war.
Summary Of Dangerous Activities As They Pertain To Your Life Insurance Benefit
It is always best to look over and understand every part of your life insurance policy before you sign anything and agree to pay for it. Making sure that your life insurance policy includes these beneficial provisions can save you both money and aggravation.
When selecting a life insurance company, make sure all is understood before purchasing your policy about what they deem as “dangerous activity.” As you may not fit into any of the categories mentioned above at the present, it does not mean your circumstances will not change during the term of the life insurance policy.