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Insurance thumbnail_Knowledge Series 11- Exclusions in Term policy

BySandip Raichura

Aug 18, 2022
Insurance thumbnail_Knowledge Series 11- Exclusions in Term policy


Continuing the Knowledge Series- Today we’ll discuss about the Term Plan Exclusions


Term life insurance is vital for the financial security of the family and is one of the most prevalent types of life insurance available today. It is worth purchasing for the family’s financial security.


A life insurance policy will not compensate you for all types of deaths, there are a number of exclusions that insurance do not cover. Every insurer has a list of exclusions, which are basically events/circumstances and their consequences that are not covered in the policy. If an insured person dies in mysterious circumstances, it is the insurer’s responsibility to thoroughly examine the cause of death to rule out foul play and decide whether the death was caused by an incident or circumstance not covered by the policy.


The following are the most common types of term plan exclusions:


False/misrepresentation – When applying for a life insurance policy, the applicant must ensure that no facts or information about himself are falsified or misrepresented. If the insurer detects a discrepancy in the information you provided at the time of application, your policy may be cancelled.


Participation in unlawful/criminal acts – No insurance company will cover the risk presented by illegal/criminal/unlawful activities. Every life insurance policy has this as one of the typical exclusions. This can include things like drinking and driving, consuming intoxicants like drugs or alcohol, being injured or killed in a car accident while not wearing a seat belt or speeding, participating in illegal protests, and so forth. No insurer will pay or consider a claim if the insured died as a result of illegal or unlawful action.


Pre-Existing Health Issues– Death due to a pre-existing disease(undisclosed) is another common life insurance exclusion. Pre-existing diseases are conditions that the insured had at the time of application or prior to the start of coverage. Typically, life insurance does not cover these.


Pregnancy Related issues-Life insurance policies may not cover death caused by pregnancy or pregnancy-related complications in the majority of cases.


Adventurous Activities– Exclusions for dangerous or adventurous activities may be seen in insurance policies. This is because these activities are associated with a high level of life danger, and as a result, they will not be covered. Skydiving, paragliding, rock climbing, scuba diving, automobile racing, hang gliding, and other adrenaline-pumping adventure activities are frequently excluded from this prohibition.


Air travel — In most cases, death in an air crash while on a private plane is not covered by an insurance policy. The insurer may pay out the death benefit if the insured died while travelling on a commercial aircraft with a predetermined schedule and routes.


Act of war – This is another prevalent exclusion in a life insurance policy that was perhaps less common in the past than it is now. The death benefit will not be paid out if the insured dies as a result of a war act or any other war-related action, according to this clause.


Suicide – Most life insurers will not cover death by suicide, especially if it occurs within two years of the policy’s start date. The death benefit may not be paid in such instances, but the nominee may get an amount equivalent to or greater than 80% of the total premiums paid for the insurance until death, depending on the policy details. The policy’s terms and conditions will govern the amount of premium that will be refunded.



As per what is mentioned above, it is reasonable to conclude that insurance is not something to be taken lightly. When purchasing an insurance, it is necessary to review the list of exclusions that may result in claims being denied. The insured must carefully study the insurance contract and be aware of any applicable exclusions. It’s an instrument that will protect your loved ones’ financial security and well-being, particularly in times of adversity.


To know more, please click on the below link:

https://posp.plinsurance.co.in/quote (for Brokers/PP’s- B2B)

http://plinsurance.co.in (for clients- B2C)

(With the help of this link(App) you can take the quotes(GI/HI/LI) and can login the policies also)


Please feel free to call/ to discuss anything related to Insurance.




Image and article originally from www.plindia.com. Read the original article here.