Which of the following is NOT a standard exclusion in a life insurance policy?

In the context of life insurance policies, exclusions refer to specific conditions or situations under which the insurance company will not pay a death benefit. Each of the first three options—war, aviation, and suicide—are commonly recognized as standard exclusions in many life insurance policies, primarily because they represent high-risk scenarios for the insurer.

War exclusions are typical because combat situations can lead to unpredictable and high mortality rates. Aviation exclusions often apply to those who are engaging in high-risk flying activities, such as piloting their own plane or participating in aerobatics. Similarly, suicide is often excluded in the initial years of a policy, reflecting the concern about moral hazard where individuals might purchase insurance with the intent of self-harm.

However, the fourth option, pertaining to hazardous occupations, is not universally considered a standard exclusion. While individuals in particularly dangerous jobs may find their coverage is limited or priced higher, it does not equate to a standard exclusion. Instead, many life insurance policies may include provisions that either allow coverage with certain limitations or adjust premiums based on the level of risk associated with the specific occupation. This differentiation underscores why hazardous occupations are not categorized in the same way as the other standard exclusions.