Clauses and Exclusions

Before you enter into a legal agreement with an insurance company, read over your policy, paying special attention to the clauses and exclusions. They contain information about your rights (and the insurance company's rights) that may be vital to you in the future.


This section:

  • Gives insurance terminology definitions for each clause.

  • Advises which clauses your policy should contain.

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Tackling the policy

Before purchasing a life insurance policy, its advisable to read it over carefully. Understanding your responsibilities as a policyholder is crucial. Your rights and the rights of your insurance company are outlined in your policy - its just a matter of knowing where to look.

The two sections to locate are:

  • Clauses
  • Exclusions

Clauses establish the rules you and your insurance company must follow. Exclusions reduce the insurance company's responsibility. Since these two sections outline the protection you can expect to receive, it is important to pay special attention to what these provisions imply.

We want to guide you through each clause or exclusion, help you understand the exact insurance term definitions of each, and indicate the provisions considered to be standard.

To do this, we have compiled a list of common clauses and exclusions and divided them into groups.

  • Those protecting you and your beneficiary
  • Those protecting your insurance company


When you're committing yourself to a long-term financial obligation, it's a good idea to read all the fine print, and to understand what it means. Don't skip these (admittedly) boring pages.

Next: clauses protecting you and your beneficiary

Learn even more:

Getting the lowest possible premium on your life insurance is almost like an art form. There are many variables to consider, and to get the right balance of term length, benefit amounts, and policy riders and illustrations, you need to take a careful step-by-step approach to the buying process.

Our free life insurance course is designed to help you do just that.

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