What Is A War Clause For Low Cost Life Insurance?

By Lisa Olsen Posted in Life Insurance News



Many of the younger people seeking out low cost life insurance are eligible for the military, and most life insurance company now place a war clause in low cost life insurance policies. These clauses state that the policy will not pay for death when it is caused by war. There are of course insurance policies that are already in place where this clause does not apply, however new policies are carrying the clause.

Some Insurance Providers Will Offer Military Personnel Insurance With A War Clause

Some Insurance company will give death benefits even when the policy holder is in the armed forces, or out of the country, so long as it is not caused by an act of war. In other words, if a beneficiary dies in an auto accident, and he is in Manila and a part of the armed forces but was not in an act of war then his beneficiaries can collect.

Stricter Insurance Providers Will Not Offer Military Personnel Insurance Coverage

Of course there are insurance companies that have stricter policies in force. Some insurers will not insure someone in the military until deferment has been granted.

The truth is that insurance companies do not really cater to the soldier and haven’t been since World War I. Because of this the government has written billions of dollars into life insurance policies for the armed forces and many that are still in effect. Today the Veterans Administration has written close to 600 thousand new policies. These policies can give a serviceman around $10,000 which covers them for death in battle. The rates for such insurance can be as low as .64 cents a month for every thousand dollars of insurance and increases to $3.97 per thousand at age 65.

This type of insurance has not denial for death caused by war and is subsidized by taxes. After receiving deferment a military person may still retain this type of insurance policy and purchase other types of low cost insurance too.

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