What might a life insurance policy exclude regarding the cause of death?

A life insurance policy often includes exclusions related to certain causes of death, particularly those deemed high-risk or unlawful. In this context, death caused by criminal activities is usually excluded because insurance companies consider these situations as circumstances that the insured party could have potentially avoided. The presence of this exclusion is intended to mitigate the insurer's risk and prevent moral hazard, where individuals might take undue risks knowing they have insurance coverage.

For instance, if an individual were to die while committing a crime, insurers typically view this as an intentional act that falls outside the bounds of ordinary risk covered by life policies. Therefore, policies define clear terms regarding these exclusions to protect against fraudulent claims and ensure responsible underwriting.

On the other hand, accidental deaths are generally covered, as are deaths due to natural causes and illnesses, depending on specific policy terms. The exclusion related to death from illness after two years refers to the contestability period, where insurers may examine claims more closely if death occurs shortly after the policy begins. However, after this period, normal illnesses typically are not excluded.