Which item is commonly excluded from disability income coverage?

• A. Injury caused by a car accident
• B. Disabilities arising from pre-existing conditions
• C. Disabilities caused by mental illness
• D. Disabilities due to war or acts of war

Answer: (D)

Disability income coverage relies on exclusions to limit what risks the policy will pay for. Among common exclusions, disabilities resulting from war or acts of war are frequently excluded. This is because war carries exceptionally high and unpredictable risk that standard private disability policies aren’t equipped to insure, and coverage for such events is typically handled by military or government programs rather than civilian disability plans.

In contrast, injuries from a car accident are generally considered ordinary risks that disability policies are designed to cover if they meet the definition of disability and the policy’s terms. Disabilities arising from pre-existing conditions can be excluded or deferred under waiting periods in some policies, but that isn’t as universally applied as the war exclusion. Mental illness is sometimes covered, though it may have limitations or separate rider provisions depending on the policy.