War or Military Service Exclusion

Injuries or sickness that arise from declared or undeclared war or from active military service — War and military service exclusions are common limitations in health and life policies. They exclude losses caused by war, declared or undeclared, or by injury or sickness incurred while on active military duty. The insurer excludes these risks because wartime and military exposure creates unusually high and concentrated loss potential that cannot be priced with ordinary actuarial assumptions. Aviation and illegal-activity exclusions are similar risk-based exclusions found in health policies. The exclusion operates by cause, not by type of treatment or provider. Wartime injuries and conditions arising from military duty are outside the policy's intended civilian risk pool, so carriers exclude them to keep premiums aligned with the risks that civilian policyholders actually face.

National insurance concept

Pay only a limited amount, such as a refund of premiums or the cash value — A war or military service exclusion limits the insurer's obligation when death results from war, whether declared or undeclared, or from military service in a combat zone. Instead of the full face amount, the insurer typically pays a limited sum, such as the total premiums paid or the policy's cash value or reserve. The exclusion protects the insurer from the catastrophic and largely uninsurable mortality risk of war and is a standard provision found in many life insurance contracts, particularly those issued during wartime.

National insurance concept