Finance
Key things that term insurance plans do not cover
The aim of an insurance plan is to provide financial security to an individual and their family in the event of unforeseen circumstances like injury, accident, theft, and any loss of property due to man-made or natural disasters. The protection offered depends on factors like the plan’s type and duration, the policyholder’s age, profession, and health history. Companies offering term insurance may have different yardsticks on what is covered or excluded from a plan. What is a term insurance plan? Term life insurance is one of the most popular and simple plans. While it is less expensive than whole life insurance, one has to pay a premium only for a fixed period. If the person insured passes away during the period, the benefits are given to the family or the nominee. A term insurance policy usually lasts 10 to 30 years. Exclusions of insurance plan While an insurance plan offers good financial coverage, its scope is limited, as the plan will cover only specific events or conditions listed in the plan. It will also provide coverage only up to the limit specified in the plan. The policy may also involve various exclusions. It is, therefore, important to know what is covered in an insurance plan and what is not.