Though a life insurance policy offers you financial cover against multiple scenarios, there are certain situations in which your insurance company can decline your claim. It is recommended that you go through all the limitations as mentioned in the fine-print before signing-up.

Here’s a quick rundown of the some of the common exclusions-

1. Death as a Result of Lifestyle Diseases

Do not conceal any health-related information while filling out your application form. Lifestyle-related habits like smoking, drinking and other health risks associated with them are some of the crucial deciding factors.

People with coronary heart disease, blood pressure, diabetes, obesity etc. are more vulnerable to health complications. And, this is the reason why smokers need to pay a higher premium amount as compared to non-smokers because they impose a higher risk on the insurer. Even your driving habits are accounted for.

The insurance company will decide whether to accept or reject your application based on your lifestyle habits. Make sure that you accurately present your medical history to your insurer.

2. Self-inflicted Injuries

Accidental deaths resulting from deliberate self-harm, self-abuse, or psychological disorders are usually not covered by a plan. The beneficiaries of the policy cannot make a claim if the death of the policyholder takes place due to any such reason.

3. Involvement in Extreme Sports Activities

Death due to involvement in adventure sports like paragliding, scuba diving, trekking, water-sports activities, rock-climbing, sky-diving etc. is not given a cover under life insurance policy.

Usually, it is not covered, but there are some life insurance companies in India which have tried to fill the gap amid the increasing popularity of adventure sports/activities in our country. However, this extended coverage comes at a higher premium cost.

4. Man-Made Disasters

The claims arising due to riots or war come under man-made disasters. Any suffering or damage that is caused due to negligence on part of human-beings shall not be counted. This is to say, no coverage is provided if such a situation arises.

5. Loss of Life due to HIV and STDs

In case of untimely death of the policyholder due to sexually transmitted diseases like HIV/AIDS, the claim made by the beneficiaries will be rejected.

6. Intoxication and Overdose of Drugs

Consumption of drugs and overdose of alcohol and medicines can impose serious health risks and even result in death. If the death of a policyholder occurs due to overdose, it will lead to rejection of the insurance claim.

Therefore, you should be responsible, else the dependent members of your family will not be given any death benefit by the company, and the purpose of buying a policy will not be served.

7. Criminal Intent/Illegitimate Activities

Risk arising due to involvement in any unlawful activity or intentional violation of the law is beyond the scope of coverage. If it is a sudden and unintentional act, only then will it be eligible for a claim.

Read the Fine-Print Carefully

It is advisable that you thoroughly read the policy document and understand all the terms and conditions. It may be a little monotonous but it will be worth the weariness. Singing up for a policy without going through the exclusions can cost you more than you can imagine.

Nobody would like to pay life insurance premium just to let their loved ones face financial crises in their absence. If you are aware of all the life insurance policy exclusions, you will know what not to do to ensure a good life for your family in case of your untimely death.