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What Are The Most Common Exclusions Under Endowment Plans?

Published On Sep 03, 2021 3:00 PM By InsuranceDekho

Endowment plans are the best approach to maintain financial security and independence in any situation because they provide guaranteed returns at maturity as well as additional perks. It also includes insurance coverage in the event of an accident. The endowment insurance plan is one such unique and beneficial plan. It's crucial to pick a plan that's matched to the investor's specific needs. While taking advantage of a plan's benefits, it's also important to be aware of scenarios that may fall outside the scope of your insurance policy.

Common Exclusions Under Endowment Plans

The following are examples of common endowment plan exclusions:

  • Exclusion Of Suicide

Suicide deaths are rarely covered by insurance plans, however, depending on the plan, the nominee or beneficiary of the policyholder may be entitled to at least 80% of the total premiums earned up to the time of demise presuming the policy is still ongoing. This data may vary based on the coverage. Death benefits are not always available in suicide instances. The step is to understand all of the information before signing up for the plan.

  • Taking Part In Riots And Civil Unrest

Deaths that occur as a result of participation in any illegal activity, such as a riot, or mishaps that occur as a result of engagement in illegal activities will not be reimbursed by the policy because doing so would encourage discontent in society and make them complicit.

Must ReadWhat Are The Significant Features Of The Endowment Plans?

  • Drug And Alcohol-related Deaths

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

  • Pre-Existing Condition

Death caused by a pre-existing ailment will not be covered by insurance since it incorrectly rigs the odds of receiving insurance coverage because the outcome is predicted.

  • Cases of Life-Threatening Activities Participation

As a result of an injury, while competing in a sprint or other hazardous activity, death occurs. Intentionally putting yourself in a life-threatening situation will not be covered by the insurance carrier for the purpose of boosting the client's general well-being.

  • Giving False Information

When purchasing an endowment plan, it is necessary to submit precise information. Any anomalies discovered by the insurer may result in the cancellation of the policy, as well as all benefits associated with it.


When buying an endowment plan, one hopes to safeguard their future and make preparations so that they will not be shaken when rough waters arrive. As a result, it is critical for both the client and the service provider to be aware of the existing endowment plan restrictions, as these exclusions are in place to promote the well-being of their clients.

To avoid the disappointment that comes with a claim denial during a time of loss and need, it is recommended that the client reads the terms and conditions so that you may judge for yourself and are completely informed of how and when your chosen endowment plan will extort money from you.

Also Read: Reasons Why You Should Not Quit Endowment 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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