This can best be understood by an example. The individual may choose to buy life insurance and then commit suicide. Although life insurance promises to pay the applicant the sum insured after the death of life insured, suicide is not specifically covered by insurance. It provides non-life insurance. This helps reduce the loss of life. Individual life insurance does not pay the sum insured in the death occurred after the first term political suicide. The same applies for the duration of group life insurance policy issued, only instead of the workers in the deposit insurance where the insured amount is limited.

Exclusions also apply to riders or additional benefits available to the common. Consider an incident disability benefit rider, the insurance company agrees to pay an additional sum assured if the life insured dies in an accident.

Individual life insurance does not pay the insured amount if the accidental death occurs when the life insured was drunk and driving, or has been involved in a race car event. There are a number of other exceptions, such as the deaths caused by war, terrorism, accidents or incited the sketches of the life insurance business.

The waiting time for a policy is also a form of exclusion. This is widely used in non-life insurance. For example, a critical illness cover to insist on a waiting period of 180 days from the date of issuance of the policy. The waiting time protect the life insurance company of a fraudulent claim. Some insurance companies cover pre-existing diseases after a waiting period of four years. A set of care interventions are also covered after a waiting period of two years.

While buying a policy, the buyer should read the exclusions in detail. It is available in the political pamphlet. For more information, see the text of the policy and contact the insurance company. If you move from one insurer to another health insurance company, check against the policy exclusions. On the advantages of portability, you are entitled to certain exemptions from exclusion.

Source: [ET]