Having life insurance is important especially if you are your family’s breadwinner. But it’s a confusing concept to wrap one’s head around with. Like any other contracts, many important items about your life insurance are often found in the fine print. And even when you think you’ve grasp the basics of it, it can still be embedded with many loopholes and restrictions that can trip you up.

1. You Lie, You Lose

Misrepresenting or not disclosing any information on your application may end up with a claim denial in the future. If you did not disclose your medical history or you falsified your age, income, occupation or any other information on your application, your insurers will deny your beneficiary’s claim. So, make sure you answer all questions correctly and honestly because even an innocent mistake can leave your beneficiaries in greater despair.

2. Suicide Clause

The suicide exclusion states that the insurance company won’t have to pay the death benefit if the insured commits suicide in the first 2 years of coverage. The most your beneficiaries would get is a refund of the premiums paid until the time of death. This clause protects the insurance company from people who buy insurance with the intent of committing suicide in order to provide a financial benefit to their beneficiaries.

3. Alcohol And Drug Use

This exclusion varies from company to company and may not be on every policy. This can be quite tricky because it can cover any cause of death that occurs while you’re under the influence of illegal drugs or alcohol, even if the cause of death has nothing to do with the drug or alcohol use. So, if you’re drunk and died because of a rouge asteroid, the insurance company can refuse to pay your death benefits.

4. Illegal Activity

This one is pretty straightforward. If you die while committing a crime or participating in an illegal activity, there will be no payout. There’s not much of a wiggle room with this exclusion as it can apply to all illegal activities and all causes of death. Say, you’re out for a ride and decided to take a shorter route across a private property without permission (trespassing) and had a heart attack, the life insurance company can refuse to pay your beneficiaries.

5. Dangerous Activity

What’s dangerous for one person may not seem dangerous to another. Since this is the case, insurance companies usually list activities they deem as dangerous. Such activities may include skydiving and car racing. However, you’ll still have the opportunity to get covered for an additional premium. So, if you’re an avid or professional car racer and want to be covered, you can pay for that protection.

6. Misstatement Of Age Claus

Intentionally misstating your age on your life insurance application can leave you with a denied claim. Even a few days, a few months or years older or younger, it’s still the same thing. So, feel free to lie about your age to that cute guy you met at the bar, but don’t do it on your life insurance application.