Types of deaths not covered by life insurance policies Most people know that term life insurance will give a lump sum death benefit to the nominee on the demise of the insured (policyholder), within the policy term. However, not many know that there certain types of death that are not covered by life insurance policies. So, if you have a term insurance or are planning to buy one it is essential for you to know which death cases are not covered in your term insurance policy. Murder of the policyholder Case

1: If the nominee is a criminal The insurer will not settle the claim if the policyholder is murdered and investigations reveal the nominee was involved in the crime. Case

2: If the death of policyholder was due to involvement in criminal activity The insurer will not settle the claim if the policyholder is murdered due to his involvement in criminal activity.

Death happens under the influence of alcohol If the policyholder’s death is due to driving under the influence of alcohol or narcotic substances, the insurer will reject the claim.

Not disclosing the habit of smoking If you are a smoker, disclose the habit before availing the term insurance plan. Smokers may have a higher level of health risk and insurers add an additional amount (load) to the premium.

Death by participating in hazardous activities Death by participating in an adventure or hazardous activity is not covered by term insurance. These activities pose a threat to the life of the policyholder and may result in fatal accidents.

Death due to pre-existing health conditions Death due to any condition that existed while availing the term insurance policy will not be settled by the insurer. Death due to childbirth If the death of the policyholder takes place due to pregnancy complications or childbirth, the insurer would not pay the sum assured to the nominee.

Suicidal death If the policyholder commits suicide within the first year of the policy term, then the nominee will not get the death benefit. However, most insurers provide suicide coverage from the second year onwards from the date of purchase of the policy, subject to terms and conditions.

Death due to natural disaster If a policyholder with a term insurance plan dies due to a natural disaster such as an earthquake, or hurricane, then the nominee will not get the claim from the insurer.

Source Credits: Economic Times