What are common exclusions in Variable Life Insurance policies?

Death resulting from suicide within a specified period and deaths during risky activities are common exclusions in Variable Life Insurance policies. This is primarily because insurance companies aim to manage risk, and certain circumstances are considered too high-risk for coverage.

Suicide exclusions are typically in place for a predefined period, often referred to as a "suicide clause." This clause is designed to prevent situations where individuals may take out a policy with the intention of committing suicide soon after, thus protecting the insurer from potential abuse of the policy.

Additionally, activities classified as "risky" or "hazardous"—which may include extreme sports, certain hobbies, or occupations—often lead to exclusions from coverage due to the increased likelihood of accidents resulting in death. Insurers establish these exclusions to maintain the financial viability of the policy and to ensure they are covering insurable events rather than predictable outcomes of high-risk behavior.

While other options may present scenarios related to exclusions, they do not encompass the widely recognized and relevant exclusions commonly found in Variable Life Insurance policies. This response aligns with the understanding that insurance products manage risk through specific guidelines.