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Common Exclusions Under Endowment Plans

Published On Jul 17, 2021

Exclusions are circumstances in which your service provider, such as the insurance company you choose, will not cover certain events under its umbrella of comprehensive protection. These are some of the pre-existing provisions that the business utilises to justify not giving coverage in certain instances.

To minimise the disappointment that comes with a claim denial at a time of loss and need, it is recommended that the client does the laborious but necessary task of reading the terms and conditions so that you may choose for yourself how and when your chosen endowment plan can aid you.

Let's take that in and go on to learning about exclusions, specifically the limitations that apply to endowment plans, and why it's important to be aware of them ahead of time.

Common Exclusions Under Endowment Plans

Common exclusions under an endowment plan are mentioned below - 

  • Suicide Exclusion

Suicide deaths are seldom covered by insurance policies, although depending on the plan, the policyholder's nominee or beneficiary may be entitled to at least 80% of the total premiums paid up to the date of death, assuming the policy is still active.

Depending on the insurance, this information may differ. In some cases, death benefits are not available due to suicide.

Before you sign up for the policy, be sure you understand all of the details.

  • Participating In Riots And Civil Commotions

Deaths that occur as a result of involvement in any illegal action, such as a riot, or mishaps that occur as a result of engagement in illegal activities will not be paid by policy since doing so would encourage discontent in society and make them complicit.

  • Death Due to Drug And Alcohol Consumption

Death caused by drugs or any other substance isn't regarded as natural; it implies foul play because it may be self-inflicted and pre-determined, and therefore isn't an accident. The use of cannabis under the direct supervision of a medical practitioner is an exemption.

  • Cases of Participation In  Life Threatening Activities

The plan does not cover death as a consequence of an accident while participating in a race or other dangerous activity. Unless otherwise mentioned in the policy, situations such as racing or practising racing of any kind other than on foot are normally not covered by this policy.

  • Pre-Existing Disease

Death caused by a pre-existing disease will not be covered under insurance protection since it incorrectly rigs the odds of receiving insurance benefits because the outcome is predictable.

  • Aviation Threat

The association between aviation risk and life insurance has been muddled by the stigma of aviation's inherent danger. When aviation was first introduced, insurance companies tried to avoid being held liable for deaths that occurred during flights by omitting aviation risks from.


Endowment plans assist you in planning for the future by offering financial stability in the event of unanticipated circumstances. These plans provide insurance coverage for the investor. It is important to be aware of the situations that may or may not be covered by your endowment plan. The information provided in the preceding article will assist you in doing so.

Also read 

When Should You Opt For Endowment Plans?

What Are The Different Types of Endowment Insurance Plans?

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.                         

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