What Does Life Insurance Not Cover?

​If you pass away suddenly, a life insurance policy may be able to aid your family with financial support. However, not all deaths are covered by a life insurance policy. As a result, before selecting a plan, learn what it includes and excludes. This article will outline the exclusions of life insurance.

Things That Life Insurance Does Not Cover
Your life insurance beneficiary may get a payment from your insurer if you pay your premiums on time and pass away while your policy is still in effect. However, there are specific circumstances in which the life insurance provider may refuse to pay the death benefit. These circumstances are mentioned below:

1. Mortgage Insurance
   This is an optional addition to your life insurance policy, which guarantees that your mortgage will be paid off in the event of your death.
   
   A life insurance policy's lump sum payout could be used to pay off your mortgage. Still, separate mortgage insurance enables you to avoid this cost and save the life insurance proceeds for your beneficiaries' other financial requirements. This is not covered by life insurance. You will need to purchase it separately.
   
   
2. A Grave Sickness and a Disability
   Critical illness insurance and disability insurance are both available individually. Benefits from life insurance are only paid out upon the policyholder's death.
   
   
3. Suicide
   The payment of benefits in the event of suicide is permitted under some life insurance policies if the policy is older than two years. Other life insurance policies do not cover suicide at any time while the policy is still in effect.

Additional Exclusions
There are scenarios known as exclusions where the insurance will not provide benefits. Your policy will include a list of these. Therefore, it's critical to read and comprehend them. 

Pre-existing medical issues, reckless endangerment, such as if you die while doing something dangerous, and deaths while committing crimes are a few instances. Your recipient might not be eligible for benefits in the circumstances like this.

At Best Insurance Group, LLC, we aim to provide comprehensive insurance policies that make your life easier. We want to help you get insurance that fits your needs. You can get more information about our products and services by calling our agency at (970) 674-5000. Get your free quote today by CLICKING HERE. Topics and coverage discussed in this article are not guaranteed, consult with your agents to determine what your policy does and does not cover. We are more than happy to help!