The date an insured person’s coverage officially goes into effect, whether it’s a term or permanent life insurance policy. A term life policy will remain in effect until the termination date, while a permanent life policy will extend until the date of the policyholder’s passing or to a certain age (even as old as an age of 100 years). 

Included in the policy terms, exclusions are events or types of damage that an insurance carrier will not cover when claimed. An example can include general wear and tear of a vehicle or theft, if it was not agreed upon in the contract. 

A list of extenuating circumstances and causes of death included in a policy’s terms and conditions, which if they were to occur would prevent a beneficiary from claiming the death benefit. Examples include death caused by an illegal activity or the withholding of pertinent health information in the policy application form within the first two years of coverage.