Which kind of death cases not covered in term insurance?
Term Life Insurance is the most reliable source when it comes to safeguarding your family in your absence. Term insurance provides great death benefits, in case of the sudden demise of the policyholder. It gives significant financial assurance to the family and makes them stable economically, even in the absence of breadwinner.
Death is inevitable, and it can leave the near and dear once in trauma. However, it is the only truth, and we should always be prepared for it. Term life insurance helps you to make the necessary arrangements for your family in the worst scenarios. Still, there are certain death cases not covered in term insurance wherein your death claim might get rejected. If you hold term insurance or you are planning to buy one, then it is imperative for you to know about these exclusions. So, let us discuss those death cases in depth:
- Death Due to Personal Habits: While opting for Term Insurance, you get the option to choose whether you have the habit of smoking or chewing tobacco. If you have any such habit, then your health is at a higher level of risk. And thus, the insurance company impose an extra amount on your base premium. One should always give accurate information about these lifestyle habits, as this can lead to denial of the death benefit by the insurance company under the false discloser of required details.
- Road Accident Under the Influence of Intoxicants: A death due to road accident under the influence of any intoxicant including alcohol, drugs etc. will lead to a contradiction of death benefit from the insurer. There is a high chance that an insurance provider issuing life insurance if you are a heavy drinker or if you are habitual of any other intoxicant substance like a weed, marijuana, cocaine, or any other drug. It is always recommended that you should share your lifestyle habits with your insurance partner as this will help them understand your health risk factor and then accordingly, they will issue the best suitable insurance plan to you. Hiding lifestyle habits will only make your insurance plan vulnerable.
- Death by Murder: There are two separate scenarios in case of the death of policyholder due to murder. Suppose death occurs due to the involvement of policyholder in any criminal act. In that case, the claim will be rejected, but if the policyholder doesn’t involve in any unlawful or illegal activity, then the insurance company will release the death claim. A proper investigation will be done by the insurance company. They will also connect with the local police and look into post-mortem reports also to come to a conclusion.
- Death During Childbirth: Death of female policyholders at the time of childbirth will result in denial of the death benefit. Even in case of death due to complications during pregnancy doesn’t cover under the term insurance policy.
- Death Due to Engagement in Dangerous Activities: At the time of issuance of term insurance policy, the insurer will always ask about the interest of policyholder in activities that include high-risk factor including paragliding, bike racing, skydiving, parasailing, etc. Death due to the engagement of policyholder in such activities will be resulting in the rejection of the claim of the term policy.
- Suicidal Death: There are different clauses on suicidal death in various insurance companies. Most insurance companies provide a death benefit in case of suicidal death from the second year of the term insurance policy. In other words, if the policyholder commits suicide within the first year of issuance of a term policy, then the beneficiary will not get any death benefit. Wherein if death happens under similar circumstances, after completion of one year of the policy term, then the nominee will be entitled to the said death benefit.
- Death Due to Natural Disaster: Insurance companies do not provide coverage from natural disasters like Tsunami, Earth-quack, Land Slide, Tornado, etc. If the policyholder dies because of any such natural disasters, then the insurer will reject the claim.
Suppose you are a term life insurance policyholder, or you are planning to purchase one. In that case, you must read all the policy-related documents carefully stating the inclusions and exclusions such as the death cases not covered in term insurance. For further assistance, visit bimakaro.in and request a callback and connect with an insurance expert to clear all your doubts and queries to avoid disappointment at the time of claim settlement.