Term insurance plans are pure insurance covers taken for the sole purpose of securing the future financial needs of a family after the primary earner’s unexpected demise. While there is no denying that term insurance is the best protection one can have against his/her life, not all types of deaths are covered by term insurance plans. All major life insurance companies provide detailed information about what is not covered in their policies. All policyholders must be aware of these exclusions just to make sure their dependents don’t face any issues with claims in the future. Before we focus on the specific exclusions of term plans, let’s take a look at the features of term insurance policies.
A term insurance policy provides coverage against the death of the policyholder within the policy term. It covers both accidental deaths and natural deaths occurring within the policy period. Following the unexpected death of the policyholder within the policy term, the lump sum amount mentioned in the policy schedule will be paid to the nominee or legal heir. Typically, the primary earners of a family take term plans to secure their family’s finances in case of their untimely death. Policyholders can also enhance their coverage with the help of add-on policies or riders.
The following types of deaths are not covered by term insurance plans:
Listed here are some of the key exclusions applicable to life insurance. Before you sign up for a policy, it is better to check out these exclusions and get an understanding of what is not covered by your insurer. While death is extremely unpredictable, you can safeguard yourself from these exclusions by limiting your exposure to hazardous situations given in the list.
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