AD Banker Comprehensive Practice Exam

Which of the following is NOT typically covered under a standard life insurance policy?

1. Accidental death

2. Self-inflicted injury

3. Natural causes of death

4. Death by illness

The correct answer is: Self-inflicted injury

A standard life insurance policy generally covers a variety of causes of death, but it typically excludes self-inflicted injuries. Life insurance is designed to provide financial support to beneficiaries upon the insured's death, and it usually covers accidental death as well as death from natural causes and illness. However, a self-inflicted injury is often viewed differently in terms of risk assessment by insurers, leading to its exclusion in many standard policies. Insurers view self-inflicted injuries as a higher risk since they can reflect underlying mental health issues or intentional acts. Because of this increased risk, policies commonly contain clauses that specifically exclude benefits for suicide or intentional self-harm for a certain period after the policy is issued. Recognizing the standard coverage areas indicates why accidental death, natural causes of death, and death by illness can typically be included in a standard life insurance policy, whereas self-inflicted injury is not.