Getting a term life insurance plan is great, but you need to know what is and is not covered in your policy. You should know what kinds of deaths are not covered in the claims to help you manage situations in advance and avoid unpleasant surprises to your beneficiaries upon your death. This article discusses the types of death not covered in term life insurance.
The Deaths Not Covered In Term Life Insurance
1. Natural Disaster
If a policyholder dies from an earthquake, flood, or any natural calamity, the death cannot be considered for a claim. Your beneficiary needs to be aware of this.
If a policyholder dies in a terrorist attack, such cannot be considered for a claim by the beneficiary. Therefore, the insured should try to avoid public places that have a high chance of terrorist attacks.
3. Undisclosed Illness
If a policyholder dies of a critical illness or dangerous health habit that was not disclosed initially, such death cannot be considered for a claim. Therefore, the insured must reveal any illness or unhealthy lifestyle to the insurer.
4. Self-Inflicted Injuries
If a policyholder dies due to self-inflicted injuries or an intentional, unsafe activity, such a claim made by the beneficiary will be rejected. Death due to extreme adventure sports will not be covered.
5. Drug/Alcohol Abuse
If the insured dies from intoxication, abuse, or overdose of drugs or alcohol, the insurer will not provide death benefits to the beneficiary. Accidental death due to driving under the influence of alcohol or drugs won’t be covered.
If a policyholder was murdered by the beneficiary or a third party who has acquired interest in the policy, such a claim will be rejected by the insurance company until the beneficiary is acquitted.
If the policyholder commits suicide during the term life policy period, there will be no coverage for it. Some life insurance companies may provide coverage for suicidal death, though.
If the policyholder is participating in military service or training in the armed forces of any country e.g. Army, naval, and air force service.
Read more about Term Life Insurance, how it works, and its benefits.
Any natural death or disclosed health issues is usually covered by term life insurance. However, as an insurance buyer, you need to familiarise yourself with the inclusions and exclusions in your policy documentation before deciding to proceed. Some insurers like Leadway Assurance also provide additional (optional) cover e.g Cover for Permanent Disability and/or Critical Illness.
Thinking of buying term life insurance? Leadway Assurance offers a pre-priced and affordable Term Life Plan that costs only N10,000 yearly with up to N1,000,000 in benefits. Looking for something else? Kindly request a callback today.