Each life insurance policy has a stated value and that is known as the face amount. This isn’t always the total that’s paid out on the death of the insured as there maybe clauses which limit liability in certain situations.
Riders are attachments to a term life insurance policy which might increase the value of a policy or, in some cases, waive certain types of coverage.
Limited liability clauses might be in affect for a term life insurance policy to protect the insurance company from the insured’s death by suicide during the first two years of the policy or from certain prohibited activities throughout the life of the policy.
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