List of Common Exclusions in Life Insurance - Greyfont

List of Common Exclusions in Life Insurance


A life insurance is a type of insurance that pays out a sum of money on the death of insured or after a particular number of years. This type of policy helps you secure the future of your loved ones by providing adequate coverage at affordable premium rates. On death of the policyholder, sum assured is paid to the nominees of the policyholder along with bonuses, if any.


These policies also come with a list of exclusionsthat one must know to ensure that the insurance company does not reject the claim.



  • The nominee is not paid any benefit if the insured commits suicide within one year of the policy.
  • A few insurance plans only offer a certain percentage of the premiums in case of the policyholder commits suicide within a year.
  • In a few types of life insurance plans, suicide is excluded for 2 years.


Man Made Disasters:

  • A life insurance plan does not pay out any death/maturity benefit if the policyholder dies due to any mad made disaster such as a riot, nuclear explosion, stampedes or others.


Illegitimate/Unlawful activities:

  • If the policyholder dies due to an unlawful activity, then the insurance company can reject the claim if it finds out that the policyholder had intentionally participated in the unlawful activity.


Life style related risks:

  • If death is caused due to consumption of alcohol or smoking, then the insurance company can reject the claim if the policyholder didn’t mention about this habit at the time of policy purchase.


Adventure sports:

  • Life cover is excluded if the policyholder dies due to activities such as adventure sports, racing, etc.


Illegal drug abuse:

  • Over consumption of prescribed medicines or consumption of drugs/alcohol can lead to rejection of life insurance claim.



  • Death caused due to war or terrorism is excluded.


HIV or sexually transmitted diseases:

  • No pay out is made if the policyholder dies or is contracted with HIV or any sexually transmitted diseases.


Pregnancy and childbirth:

  • If death is caused due to any complications in pregnancy or during childbirth, then no claim is paid out.


Pre-existing diseases:

  • If the policyholder dies due to a pre-existing illness that was not mentioned during the policy purchase, then no claim is paid out.


Other grounds on which the life insurance company can reject your claim are:

  • Incorrect information: At the time of buying the policy it is necessary that you give out the right details to the insurer. Providing any incorrect information about yourself including your income, marriage status, surname, etc. can lead to rejection of the claim.


Declaring wrong age:

  • Do not lie to the insurance company about your age as doing so can lead to instant claim rejection. Note that your life insurance premium is decided on the basis of your age.


Lapsed policy:

  • If you do not pay the premiums on time, then your life insurance claim is bound to get rejected. It is important for your policy to be in force at the time of making the claim.


Not updating the nominee details:

  • If you fail to appoint the nominee details, then your claim will get rejected. For example if you have made your mother the nominee in your insurance policy, but after her death, if you fail to update the new nominee details, then the claim will be rejected by the company.


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