Life Quotes, Inc. Asks, Does Life Insurance Cover a Terrorist Attack?

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May 10, 2011, 05:30 ET

DARIEN, Ill., May 10, 2011 /PRNewswire/ -- There are a number of potential hazards covered by a life insurance policy, but after Sept. 11, 2001, everything changed. In total, 2,976 people perished in the aftermath of the World Trade Center terrorist attacks in New York City—the worst terrorist attack on record.

According to the Insurance Information Institute, the combined total of the death and destruction left in the wake of the 9/11 terrorist attacks was $39.4 billion in property, life and liability claim costs. Life Quotes, Inc. suggests asking the following questions when considering the perils covered under your life insurance policy:

Check your policy. You should always review your life insurance coverage at least once a year to make sure everything is up to date and there are no hidden exclusions found in the policy language.
Are there any policy exclusions? The good news is most individual life insurance policies do not have war or terrorism exclusions. If you are living or working in a dangerous environment and you apply for individual life insurance, an insurance company may simply deny coverage or not write a policy. But there is always the possibility an insurance carrier may still cover you, but with an additional charge (or a higher rate) for a policy if you are working in an unsafe area. However, it is more likely you will find exclusionary language regarding terrorism in disability insurance and travel insurance policies.
Is terrorism defined as an "Act of War?" Brian Ashe, spokesperson for the Life Foundation, says no. "There is no universally agreed, legally binding criminal law definition of terrorism. Generally, terrorism refers to violent acts which are intended to cause fear and target non-combatants and are committed by non-government entities."
Is there a threshold for the amount covered under "Acts of Terror"? No. Life insurance policies do not have a threshold for coverage under terrorism.
How much coverage should you buy? How much insurance will your family need in the event of your accidental death? Insurance experts suggest buying enough life insurance to provide adequate capital for any lost income (12 to 15 times the policyholder's annual income), to cover mortgage payments, tuition and everyday expenses.

To learn more about how a life insurance policy can protect you and your family from a national disaster, visit http://www.lifequotes.com/articles/could-an-act-of-terrorism-impact-your-insurance-policy/.

About Life Quotes, Inc.

Originally founded in 1984, Life Quotes, Inc. owns and operates a comprehensive consumer information service and companion insurance brokerage service that caters to the needs of self-directed insurance shoppers. Visitors to the Company's website, www.lifequotes.com, are able to obtain instant car, life, health, home and business insurance quotes, and have the freedom to buy online or by phone from any company shown. Life Quotes, Inc. generates revenues from receipt of industry-standard commissions, including back-end bonus commissions and volume-based contingent bonus commissions that are paid by participating insurance companies. Life Quotes, Inc. also generates revenues from the sale of website traffic and insurance leads to various third parties.

SOURCE Life Quotes, Inc.