What exclusions and limitations apply to key person insurance policies?

Key person insurance policies in Australia typically include several standard exclusions and limitations that businesses should understand. Common death cover exclusions include suicide within the first 13 months of policy commencement (this is a standard life insurance exclusion), death resulting from criminal activity or intentional self-inflicted injury, and death during certain high-risk activities not disclosed during underwriting. For TPD and trauma cover, exclusions often include pre-existing medical conditions not disclosed during application, disabilities or illnesses arising from non-compliance with medical treatment, and conditions arising from alcohol or drug abuse. Most policies have waiting periods before certain benefits commence - typically 3-6 months from policy start. There may be benefit limitations based on the key person's age, with some policies reducing or ceasing TPD coverage after age 65. Critical illness or trauma definitions are specific - the medical condition must meet exact policy definitions to qualify for payment. Policies typically require key persons to work minimum hours weekly (often 20-30 hours) to qualify for TPD benefits. Some insurers impose maximum coverage limits based on multiples of salary or business revenue. War and acts of terrorism may be excluded. Premium loadings or exclusions may apply to key persons with dangerous occupations or hazardous hobbies. It's essential to review policy documents carefully and ensure key persons understand what's covered and excluded.