LIFE INSURANCE EXCLUSIONS

Apart from all the benefits that a life insurance policy offers, there are certain exclusions too. Exclusions are those incidents, accidents or action from the insured that are not covered under the life insurance policy cover which means that the insurer will not receive any financial help or claim from the insurance company in case those cases happen.

The first exclusion from the life insurance policy is mostly the suicide clause. Under the suicide clause it is clearly stated that the insurance company will not pay out any amount if the policy holder commits suicide during the first two years from buying the policy. Only the premiums paid will be refunded. Many people buy the life insurance policy and commit suicide so that they can pay off their debts and the family can live in peace. The suicide exclusion is to prevent such cases. Another exclusion is the aviation exclusion which means if the insured has an accident while travelling in a private plane or is not a passenger of a commercial flight, he will not be paid any benefits. In the same way, war exclusion is there according to which if the person dies during a war, he will not be paid anything.

Also there is a dangerous activity exclusion mentioned in most of the policies according to which if the person dies during activities like hand gliding, auto racing etc., there will no payments from the insurance company. There are many such exclusions which one must know before buying a life insurance policy to save them from facing any untoward situation later on.

TERM LIFE INSURANCE

As compared to the permanent life insurance, the term life insurance gives you a cover for a shorter period of time. For a layman, life insurance means buying a kind of protection for your family and loved ones and if you need it for some time where you feel that after a few years, someone else or your children will start earning and you will not be solely responsible for them, you can buy a term life insurance policy for a few years only. While buying a term life insurance cover, you can specify the number of years that you need it for.

Compared to the other policies, because a term life insurance policy is for a shorter period of time, its premiums are lower too. You can stop paying the premiums whenever you want to and you will not be charged with any kind of penalties. You can even convert the term life insurance to a permanent life insurance anytime if you feel the need and your premiums will increase accordingly.