when it comes to taking term insurance one should know its benefits as well as exclusions. most of the company carries their own policies in order to provide a claim to the policyholder, but some of the basics exclusions that are common in almost all the term insurance are listed below.
1.exclusions due to accidental death.
there are few cases where even after the accident the policyholder might now be able to claim his policies cover.
- accident occurring due to drink and drive cases
- participation in illegal racing or rash driving
- pre-existing medical conditions.
- death during labour
- taking part in criminal activity.
2. lifestyle related exclusions.
it is better to inform your insurance company about your smoking habit. because if you don’t and you get a disease caused by smoking then you carry a less chance of getting your claim although showing your smoking habit may increase your premium amount a bit but then it keeps you in the category of high-risk pools covering your smoking-related illnesses.
3.other exclusions for term insurance plans.
sexually transmitted diseases.
you are not able to claim your term plan if you are suffering from STD’s like HIV, AIDS etc. they are kept excluded from the policy illness covers.
intoxication or narcotics
if the death occurs due to excessive use of drugs or alcohol then there are no chances one might be getting the policy cover
suicide is covered in almost every plan’s exclusion list.there will be no claim if the policyholder commits suicide within one year of policy inception.even group policy does not provide cover under the suicidal case.
if one’s reason of death is self-inflicted injury or taking part in any high-risk sport with proper precautions then one might not be able to enjoy the policy’s benefits.
we have tried to provide you with the best information regarding exclusions in term insurance plan. but the best option for you is to read all the scheme related data carefully.