| Reading a life insurance
policy can be overwhelming. It is a good idea to set
it aside for a day after you have read it, then pick
it back up and read it again. Whatever you do, don’t
just file it away if you aren’t comfortable with
it. An insurance
policy of any kind is not going to be easy, enjoyable
reading, but the better understanding you have of the
general structure, the more assured you can be of having
the correct amount or type of coverage for your needs.
The exclusions section informs you how your coverage
is limited. Usually, the exclusions are much longer
and more specific than the insuring agreement. It is
important to understand what is excluded. If you are
not comfortable with what you have read, then by all
means, contact your agent to discuss any concerns or
confusion you have.
Exclusions are the things that your life insurance
policy will not cover. As you are reviewing your exclusions
section, take a look at the size of the list. If it
is a large list, then the insurance
company has tried to record all of the exclusions
listed throughout your policy;
if it is a short exclusions list, this usually means
that they are listed throughout your policy. Be careful
when you read this list; make sure you understand it
and you don’t miss anything. Pre-existing conditions
refers to a medical condition you or someone in your
family had before you obtained the policy.
Some plans will cover pre-existing conditions, while
others will exclude them.
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