The amount of risk, liabilities and the extent of loss covered by an insurance policy is coverage.


Under life insurance, the scope of coverage gives a clear idea about "what is covered" and "what is not covered". The insured must pay the premium to keep the policy in force to benefit from insurance coverage.

Knowing the coverage is very important before buying any life insurance policy. Because it always helps in making informed decisions. Referring to the policy brochure is the best way to do it. You can consult an insurance agent as well.


Pramod took a term insurance policy for Rs.1 crore for a policy term of 20 years. He died due to a sudden heart failure ten years after the premium payment. Pramod’s wife was the declared nominee under the policy, and she received the benefit. According to the coverage under the policy, the nominee was given the advantage. The scope of coverage explained that the term plan would pay the benefit irrespective of the cause of death, whether it is health or accident.