In this article, we’ll walk through what exclusions mean in VUL insurance, why they matter, and how to make sure you’re choosing a policy that actually works for your life—without unpleasant surprises.

Understanding VUL Insurance: A Quick Refresher

VUL insurance is a two-in-one product: part life insurance, part investment. You pay premiums that go toward both the cost of insurance and an investment fund you can grow over time. It’s flexible, powerful, and can help you build wealth while staying protected.

But like all insurance products, it comes with rules. And exclusions are one of the most important—yet overlooked—parts of the policy.

What Are Exclusions in VUL Insurance?

Exclusions are specific conditions or situations where the insurer is not obligated to pay out the death benefit or other claims. These are clearly stated in the contract, but let’s be honest—how many people actually read the fine print?

If you’re exploring VUL insurance for yourself or your family, now is the time to pay attention.

Common VUL Insurance Exclusions You Should Know

Here are some of the most common exclusions found in VUL policies:

• Suicide Clause: Most policies include a clause stating that if the policyholder dies by suicide within the first two years, no death benefit will be paid.
• Pre-Existing Conditions: If you didn’t disclose a medical condition during the application and it contributed to the cause of death, your claim could be denied.
• Illegal Acts: Death resulting from committing a crime or participating in illegal activity is typically excluded.
• War or Terrorism: Some policies exclude coverage for deaths related to acts of war or terrorism.
• High-Risk Activities: If the insured dies while engaging in extreme sports (like skydiving or scuba diving), and those activities weren’t declared, it might void the claim.

These exclusions are not hidden—they’re printed in your policy. But many people overlook them, either due to trust in their agents or simply not knowing what questions to ask.

Real-Life Example: When Exclusions Change Everything

Let’s talk about Joel. At 36, he bought a VUL policy as a new father. He was healthy and had no known illnesses. A year later, he passed away in a tragic motorcycle accident. His family expected the insurance benefit—but the claim was denied.

Why? Joel had ticked “No” under “dangerous hobbies” on his application. Turns out, he joined a weekend motorbike club after buying the policy. His insurer deemed the activity high-risk and pointed to the exclusions clause. The death benefit—worth millions—was denied.

Heartbreaking, right? But avoidable. Joel’s story reminds us that knowing the exclusions—and keeping your insurer informed—is just as important as signing the policy itself.

Why Exclusions Exist (And Why They’re Not All Bad)

Insurance companies aren’t trying to trick you. Exclusions help them manage risk, which keeps premiums affordable for everyone. Without exclusions, coverage would become unsustainable—and far more expensive.

That said, it’s your job to understand these exclusions so you can plan around them. It’s not just about getting coverage. It’s about getting the right coverage.

How to Avoid Trouble with VUL Insurance Exclusions

Here’s how to protect yourself and your family from a denied claim down the road:

1. Be Honest During Application

It’s tempting to hide that you go rock climbing or that you were once hospitalized for hypertension. But insurers verify medical and lifestyle information. Full disclosure is always better.

2. Read the Fine Print

Ask your agent about the exclusions section and request a written list if needed. Don’t assume anything. Ask about suicide, pre-existing conditions, war, or hazardous jobs/hobbies.

3. Update Your Policy When Life Changes

Started scuba diving? Switched to a dangerous job? Notify your insurer. It might affect your policy, but being upfront ensures future claims are safe.

4. Involve Your Family

Make sure your beneficiaries know the policy terms, where to find documents, and how to process claims. Informed families avoid panic and confusion.

Comparing VUL Insurance? Ask These Exclusion Questions

If you’re still exploring whether VUL insurance is right for you, don’t just compare premiums and fund performance. Ask these key questions:

• What exclusions are included in this policy?
• Are there additional riders that cover exclusions (like accidental death or critical illness)?
• What happens if I take up a high-risk activity after the policy is issued?
• Will the policy still pay if I pass away abroad or during civil unrest?

These questions might feel uncomfortable—but they can save your family from grief compounded by financial loss.

VUL Exclusions: A Deal Breaker?

Not at all. In fact, most VUL exclusions are standard across the industry. What matters is transparency, education, and preparation.

Knowing what your policy won’t cover helps you decide whether to get additional riders or a different type of insurance. It gives you control over your choices and peace of mind that you’ve planned wisely.

Final Thoughts

VUL insurance is a smart, flexible solution for many—especially if you’re looking to combine protection with long-term investment. But no policy is perfect, and that’s where exclusions come in.

Understanding your VUL insurance exclusions isn’t about paranoia. It’s about power. Power to protect your loved ones, to ask the right questions, and to make confident, informed choices that hold up when it matters most.

So before you sign that dotted line—or if you already have—take a fresh look at your policy’s exclusions. That small print could be the most important part of your family’s safety net.