Frequently Found Exclusions In Child Life Insurance Policies

As a parent, your first and most important job is to have good financial planning in place to ensure that your children have a safe and secure future even if you are not around. These preparations will assist your children in receiving financial assistance as they go through life's significant milestones. Child plans are a sort of life insurance that plays a significant role in assisting parents in achieving their goals. Unit Linked Life Insurance Plan and Saving Plan are the two types of child plans available. Some of the Child Plans are specifically developed with the reality that life is unpredictable in mind. The plan provides you with life insurance as well as periodical rewards at key milestones in your child's life. In this post, we'll go over various exclusions, which are situations in which the Child Insurance Policy does not give any coverage or benefits.

Exclusions in Child Insurance Plan 

The Child Insurance Policy does not cover some of the exclusions. The following is a list of the same:

Suicide or Self-Harm 

Child Insurance Policy does not give any claim amount or coverage to the policy's nominee if the policy's nominee dies as a result of suicide within the first year of coverage. If the nominee dies within one year of the policy's start date, the lump sum amount of Sum Assured and Premium Waiver is not payable, but just the Fund Value on the day of death is.

Participation in Extreme or Dangerous Sports

If a child knows that he or she will participate in risky and dangerous adventurous activities or risky sports such as sky diving, rock climbing, paragliding, hang gliding, etc., the insurance will not get any claim amount or coverage.

Abuse of Alcohol or Drugs

If the insurer dies as a result of consuming alcohol or taking an overdose of drugs, no claim amount or coverage is available to the nominee under the Child Insurance Policy.

Driving Under The Influence Of Drugs Or Alcohol Causes An Accident.

In the event that the insurers die as a result of driving while intoxicated or ingesting any dangerous intoxicants, the Child Insurance Policy does not offer any coverage or claim amount to the nominee of the policy.

Criminal Behavior

In the event that the insurer is involved in any unlawful activity, war-related crimes, or criminal conduct that results in the insurer's death, Child Insurance Plans do not accept any claim amount or coverage facility.

Conclusion

Before deciding on insurance, make sure you read the exclusions carefully and thoroughly. Because only after examining all of the exclusions that the Child Insurance Policy does not cover. You can choose an ideal Child Plan, one that has the fewest exclusions and is most suited to your needs and appropriateness.  Because premiums paid are deducted from premiums paid during the policy under Section 80C and Section 10(10D) of the current Income Tax legislation, child insurance policies can be utilized as a tax-saving technique. 

Also read- The Importance Of Life Insurance Plans For Children.

Some Points to Consider When Choosing a Child Life Insurance Plan