A military service exclusion is a policy provision that limits or denies life insurance coverage for deaths that occur while the insured is engaged in certain military activities, war zones, or acts of war. Historically, some life insurance policies excluded or restricted benefits if the insured died while on active duty, especially in combat or during declared war. Modern individual policies issued in the United States often provide coverage for military personnel, but specialized exclusions may still appear in certain contracts, group arrangements, or older policies. The exact language can specify excluded circumstances, such as death while serving in a particular theater of operations or participating in high-risk missions. Military service exclusions are scrutinized by regulators and consumer advocates, and carriers must clearly disclose them at issue. Understanding whether such an exclusion applies is crucial when advising active-duty or reserve service members and their families on life insurance planning.

In practice, military service exclusion becomes a point of discussion when advisors work with clients who are on active duty, in the reserves, or planning to deploy. Producers review policy contracts or specimen forms to confirm whether any war or military service exclusions apply and, if so, under what conditions. Some carriers have specific programs or underwriting guidelines for military personnel, while others rely on standard language that may or may not include exclusions. Advisors may recommend supplemental coverage-such as Servicemembers' Group Life Insurance (SGLI) or specialized policies-if existing civilian coverage appears to have gaps. During claims, carriers compare the circumstances of death with the policy's exclusion wording to determine whether benefits are payable. Agencies and compliance departments emphasize the importance of explaining any military service exclusion upfront so that clients can make informed decisions before relying on a policy for family protection.