Arkansas Life and Health Insurance Practice Exam

Which of the following is NOT a standard exclusion from life insurance policies?

1. Participation in a war

2. Suicide within the first two years

3. Terminal illness

4. Use of illegal drugs

The correct answer is: Participation in a war

Participation in a war is not a standard exclusion from life insurance policies. Most life insurance policies do not specifically exclude death resulting from participation in a war. However, suicide within the first two years, terminal illness, and use of illegal drugs are typically standard exclusions found in life insurance policies. Suicide within the first two years helps prevent individuals from purchasing a policy with the intent to harm themselves shortly afterward. Terminal illness exclusions usually prevent policyholders from making claims if death is imminent due to a terminal condition. The use of illegal drugs may lead to policy exclusions as it is considered a risky behavior that increases the likelihood of premature death.