Deaths Not Covered by Life Insurance

A term life insurance is a great way to invest in a financially secure and stable future. However, the choice of the perfect term life insurance is a crucial one. As there are few instances in which claim can lead to rejection. You must carefully go over all that it entails and be well-versed with what the policy offers.

Let us know about death cases not covered by a term life insurance plans. We will help you access all the information through this page so that you can ensure the safety while purchasing a life term insurance plan.

Types of Death Not Covered in Term Insurance Plans

Certain exclusions, such as suicide within the policy's initial period and death resulting from engaging in hazardous activities, may not be covered by typical term insurance policies. All such cases which are not covered in a life term insurance plan are explained here:

Death Due to Undisclosed Habits or Illness

Often, people tend to hide habits such as smoking or illnesses in their life insurance application in the hopes of getting benefits like lower premium rates. However, this can prove to put the beneficiaries at a disadvantage if the policyholder dies due to the conditions that they hid.

Death by Some Accidents

There are many accidental death benefits available but there are certain conditions to them. If the accident resulting in death was caused due to the policyholder being under the influence of drugs or alcohol, the death benefit claim may get rejected. This is also applicable to deaths caused by undertaking risky activities such as bungee jumping.

Death by Suicide

In cases of suicide within 12 months of the issuance of the policy, there is an 80% return for linked plans and a 100% return for non-linked ones. However, any such death case taking place one or more than one year of the date of issuance, the claim is rejected by the company.

Death due to Murder and Homicide

If the policyholder is murdered, the death is not covered by the term life insurance company. If the nominee or beneficiary is involved in the case and is found guilty, the claim automatically gets rejected.

Death Due to Terminal or Critical Illness Not Covered by Rider

There are a variety of companies that offer riders to cover terminal or critical illnesses. However, if the policyholder dies from a terminal or critical illness that is not covered by their plan, the death benefit claim will get rejected.

Death on a Foreign Land

Deaths that occur outside of the country where the policyholder lives or has signed for the term life insurance plan, is not covered. Even if the travelling was due to something necessary, the claim will still get rejected.

Death Due to Self-Inflicted Injury

Self-inflicted injuries whether deliberate or due to undertaking risky activities can lead to death. However, in such death cases, no returns are provided via the term life insurance plan.

Death due to Pregnancy and Childbirth

If the policyholder dies due to any complications arising from pregnancy or childbirth, the nominee’s claim gets rejected by life insurance companies.

Final Wordict

While a death or life term insurance have some exceptions, it is a really nice option to keep your family financially protected. Though the plan excludes such cases, it is easily claimed in case of  natural death. 

Also read 

Benefits of Buying Life Insurance Policy    

Benefits Of Enhancing Your Life Insurance With Riders

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.