You might have bought a life insurance policy to safeguard your family in case something were to happen to you. But do you know the various types of death which are not covered by the insurance companies? Failing to read the terms and conditions and exclusions of the term policy can put your family in a tough situation. So if you weren’t aware of the deaths that are not covered by most insurers, let’s find out today:
Different Kind of Deaths That Are Not Covered
Death Due to Suicide
Most insurance companies do not provide coverage for the suicidal death of the policyholder. But this is limited to the first year of the policy term only where death due to suicide right in the first year of the policy results in no death benefit. From the second year onwards, insurers start covering suicide as well under the term plan.
Death Under the Influence of Alcohol
If the death of the policyholder takes place under the influence of alcohol or narcotics, the claim of the beneficiary will be rejected. There is a small chance of avoiding claim rejection if the consumption of alcohol is mentioned at the time of buying the insurance policy. But such situations come with many terms and conditions attached to it.
Death During Childbirth
In case the policyholder is pregnant and the death is caused due to childbirth or the pregnancy, then the claim will be rejected. Many types of insurance policy do not cover death due to childbirth and no sum assured is given to the beneficiary.
Death Due to Existing Health Condition
Unless the policyholder is covered by a rider, death due to a pre-existing health condition is not covered under the policy. Insurance companies do not reimburse the sum assured to the beneficiary in such cases.
Death Due to Participation in Dangerous Activities
If the policyholder passes away after participating in adventure sports like skydiving, bungee jumping, and more such activities, then the claim is not settled. The insurance companies do not cover death in situations like these and hence, the sum assured cannot be claimed by the beneficiary.
Death In Case of Natural Disaster
A life insurance plan also does not cover death caused due to a natural disaster like earthquakes, tsunami, hurricanes, etc. Hence, the claim filed in such a case will not be accepted by the insurer and the sum assured will not be released.
Hiding the Habit of Smoking
If a policyholder has the habit of smoking, they have to disclose it right at the time of buying the policy. Most term plans do not cover illnesses or death caused due to smoking. As this lifestyle habit is injurious to health, the policyholder is sure to get diagnosed with some kind of health issue. But death due to the habit of smoking will lead to claim rejection.
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