Do you really think that term insurance covers every kind of death and you will be paid the insurance money on every purpose? Well, this is not the case. Of course, we try to get ourself term insurance in order to make our future secure but before you are all set to invest in something, you need to have a wide idea of what kind of deaths are not covered by term insurance.
We all know that term life insurance is there to provide you a lump sum death benefit and the nominee of the policyholder will receive the money. But, we have seen that a hell lot of people do not know that a few types of death are not at all covered by the policies. In fact, sometimes you might hear that some policy givers are providing coverage to every type of death but we assume, is it true?
Honestly, we assume and as per our research, there is no such term insurance that will cover every kind of death as well as circumstances. Term life insurance is one of the most popular options for policyholders and who want to make their future as well as death secure and it’s pretty obvious. We will have to put our family before us no matter what!
What Types Of Death Are Not Covered By Life Insurance?
We have researched and found out some of the death circumstances that are not at all covered by the term insurance. Let’s not ado further and discuss further.
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The death that happens under the influence of alcohol:
If the policyholder is dead under any sort of influence of drink and drive, then the insurance will immediately reject the claim. In fact, you will see that there are insurers who rarely issue life insurance policies to people who have a habit of heavy drink consumption. If you even haven’t disclosed the habits while availing the policy, you are more likely to not get the benefit.
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Death because of smoking:
If you are a chain smoker and in case, you haven’t disclosed the habit while filing the insurance, you are more likely to get no benefit at all if the reason for your death will be anything related to this. Most of the time, smokers face major health issues insurers will add an additional amount to the premium amount. According to the insurer, if you do not disclose the habit of smoking then it might lead to denial to the claim if only the death is due to smoking. It would be better to tell your insurer beforehand so that you can pay a bit extra but enjoy the full benefit.
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Death due to any pre-existing health conditions:
If you already have any serious disease and you have not disclosed it to the policy insurer then you may have to face a lot of difficulties. A lot of deaths are not covered by “death due to hazardous activities or self-inflicted injuries, HIV, Drug Overdose, and more”. So, if you have been thinking of hiding it from your insurer then you better not do this. It will not at all be beneficial for you.
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Death Due To Childbirth:
In case, you have done term insurance for your wife and she is pregnant. Well, that’s pretty much great but you should know that if she has died due to any kind of complication related to childbirth then you or whosoever the nominee is will not at all get the sum assured. So, you should not expect too much when you are doing something like that. Because you will lead to a denial and you should better ask the insurer before doing the policy and make sure about the sum.
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Suicidal Death:
Suppose you have done a term insurance policy and you have committed suicide with a year then the nominee will not at all get the benefit. So, you should know every detail before filing the insurance. According to the insurer, most of the insurance coverage is paid to the nominee from the second year mentioning the policy.
You should have a detailed idea about the policies you are about to do so that you can make the right decision. Most of the people claim insurance after this kind of death and they ultimately get nothing so you should act smart!
What Is Not Covered By Life Insurance?
We have already discussed the deaths that are not covered by term insurance in many circumstances and in case, you have done it without knowing the details then you might face difficulty at the end. If someone died due to any sort of natural disasters such as hurricane, earthquake, and others. The nominee will not possibly be covered under the term insurance policy. We have seen that people do not investigate that much while doing a term insurance policy but is it right? You should know everything beforehand so that you or your family do not face anything later.
What Does Life Insurance Cover?
In general, term insurance covers most of the natural deaths that might happen because of any health-related issue or anything like such. If the policyholder dies because of any medical condition or critical illness then the nominee will get the sum assured as the death benefit. Even if someone dies due to an accident, their family or nominee will get the sum assured. In terms of the policy, they count accident as a natural death in fact most of the plans come with the additional accidental benefit that is given to the nominee after this. But, drink and drive is a big drawback and you will not receive the money at all!
Is Term Insurance Valid Outside India?
Yes, of course. This is very much valid inside India or even outside India. You may be shifted to some other country but your term insurance was done when you used to live in India. Your nominee or family member will still get the sum assured. However, you are suggested to inform your insurer at the time of shifting to anywhere else. So that your nominee will not have to do a lot of things after your death. If the insurer knows that you live outside of India, then he will proceed accordingly.
Life Insurance Suicide:
Well, we already have mentioned that suicide is not covered by term insurance but there is a thing. If someone has committed suicide with a year of their policy then the nominee will not at all get a single penny as the death benefit. But, if this incident happens somewhere around 2 years or so, then the nominee will get the expected sum. So, when you will be doing a policy you should ask every detail to your insurer so that you can be clear from the very beginning and not end up assuming fuss.
Do You Get Life Insurance If You Are Murdered?
Honestly, it depends. Like we have seen in many cases, people are worried about Health Insurance After Death Of Policyholder but you need to get your facts clear. First of all, in many cases, the nominee will be paid the death benefit if the holder is murdered. But, it will go through a lot of examinations and so many other things that will make a difference. Many insurance companies basically deny paying on the clear case of homicide so we would always suggest you read the details and ask a thousand times to the insurer if you have ant doubt regarding anything and stay safe!
Does Life Insurance Cover Natural Death?
Yes, of course. That’s what life insurance is for. People want to make their family secure as we can not really say how long we will live but what after that? In many families, they have a single earring member and the entire thing depending on the one person who is earning. What if they meet any accident or anything sort of that? It is always a good idea to go for life insurance to make the future of our families secure. Hence, we have discussed what type of deaths are covered by term insurance and natural death is obviously on the top of the list.
Does Life Insurance Cover Homicide?
You can not really be sure of this. We have seen that most of the provides do not cover homicide and it will depend on which provider you are choosing and what benefits they have. In case, you are willing to know this, you can directly ask this to your insurer and he will make everything clear.
Does Life Insurance Pay For Suicidal Death In Texas?
Yes, but only after you have been constantly paying for two years. If you have committed suicide within a year or so then the nominee will not get any death benefit and your money will be of no use. Although, this is a very basic term. But you may ask your insurer for better knowledge and what they are providing.
Does Life Insurance Cover Overdose?
Yes. Most of the life insurance requires you to pay the insurance constantly for at least two years and then they provide coverage for overdoes. Although, not every insurance policy has the same guideline so you better ask your provider before making the deal.
Life Insurance Cancer Death:
There is a category that you may also be offered by the insurer and it’s more likely you will have to pay an additional amount to make sure that your term insurance covers death due to cancer. However, the scenario might be like, if you have done the policy before you were diagnosed with cancer.
Life Insurance Exclusions And Limitations:
Honestly, the exclusions and limitations will depend on the company and from where you are doing the policy so they will be able to explain everything to you and you can anytime shoot your queries to the insurer. He will be glad to make your facts clear and also you should know all the details regarding the insurance you are going to do and then only go for it! Making your doubts clear beforehand would anytime be the best option.
Bottom Line:
We know that life insurance is mainly done so that we can provide the best security to our family but there are so many hidden Claus that are not mentioned at the time of filing the insurance so you should better be aware and do your part research. Thanks to the internet, we are always a step ahead and nobody can fool you around.
