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Exclusions Under Endowment Policies Explained

Updated On Dec 21, 2021

Endowment plans incorporate protection and financial components in a single plan, ensuring that all of your needs are met. You stand to get maturity benefits if you finish the insurance's duration or the policy matures. The benefits are usually in the form of a lump payment that you may use for a variety of things, such as purchasing a home, purchasing a new automobile, or funding your child's education. The policy will pay off the sum assured if things do not go as planned and the assured passes away. Bonuses accumulated to date may be included in the amount promised.

Almost everybody can benefit from an endowment insurance plan as a money investment. If you're concerned about your future and want to protect it with insurance, this coverage can help. The policy is also appropriate for someone who wants to accumulate wealth over time rather than seek immediate cash. You can get endowment coverage if you fall into one of the categories listed above and meet the assurer's requirements.

Exclusions Under Endowment Policies Explained

Below are a few exclusions under Endowment plans:

1. Exclusions In General

If the life assured commits suicide within one year of the policy's issue date, 80 percent of the premiums paid will be refunded.

When a policy is revived within six months of the date of the first unpaid premium, the Suicide Exclusion does not apply, and the Death Benefit under the plan is payable. When the revival is done after more than 6 months from the date of the first unpaid premium, the benefit awarded is the highest of 80 percent of Premiums Paid.

2. Vesting In Case Of Minor Life

If a policy is taken on the life of a minor, the policy will immediately vest on him/her as soon as he/she is 18 years old, and the Life assured will become the Policyholder.

3. Intoxication

If a person dies as a result of drinking or using drugs, the insurance company has the discretion to deny the claim.

4. Homicide

If the policyholder dies as a result of the nominee's murder, the insurance company will deny the claim. If an investigation is conducted, the insurance company will put the claim on hold until the nominee has been acquitted.

5. Natural Disasters

The life insurance company will not cover any deaths that occur as a result of a natural catastrophe unless the policyholder purchases an additional rider.

The policyholder is not obligated to divulge details of their lifestyle changes after they purchase a life insurance policy. If, on the other hand, you get addicted to smoking after purchasing the policy, the insurance coverage kicks in, and the claim should be processed quickly. If you have any problems claiming your coverage, you can contact the insurance company's grievances department or the Insurance Regulatory and Development Authority.


One of the most important reasons to purchase a life insurance policy is to have a backup plan in case something goes wrong. You don't want your loved ones to be bothered by life's uncertainty. You can get a life insurance policy while keeping up with your other bills using an endowment plan. An endowment plan combines insurance and investing components to help you fight inflation while also growing your money. The majority of them are set up so that if you time your financial goals well, you'll earn a lump sum payment.

Do read - Endowment Policies And Their Pros And Cons

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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