What Types of Death Are Not Covered Under Life Insurance?

Mishaps leading to death can shake our families from top to bottom. So, it is wise to plan the future of our loved ones and secure them against mishaps. Most of us prefer to buy life insurance policies to protect the future of our families. Though it is meant to provide peace and financial protection to the family of the life assured after their demise, sometimes, due to our negligence, it may play an opposing role. Therefore, in this blog, you’ll learn what types of deaths are not covered under life insurance, along with the common reasons for which an insurance company may deny your claim. 

What is Life Insurance? 

Life insurance is a financial tool that provides financial protection to the family in case of the demise of the life assured. The insured can live and die in peace knowing that his or her family will have some financial support even when they are not around. 

Deaths That Are Not Covered Under Life Insurance 

Listed below are some deaths that are excluded from life insurance policies. 

• Suicide

If the life assured commits suicide within the first 12 months of the policy tenure, then the life insurance company will not provide a death benefit to the nominees. However, most companies start paying out a death benefit for suicidal deaths in the second year of the policy. 

• Accidental Death: 

Usually, life insurance does not provide coverage for accidental deaths. However, if you want coverage for accidental death, you can add an accidental death benefit rider to your policy by paying an additional premium. Accidental death is referred to as any death brought about by an outside, violent, and obvious force. 

• Death Due to Unnatural Calamities:

Any artificial calamities such as invasion, war, foreign hostilities, civil war, riots, strikes, or any other resulting death will not be covered by a life insurance company. The insurer is likely to reject your claim under these circumstances. Therefore, read the terms and conditions mentioned in the policy document carefully before purchasing. 

• Death Due To Intoxicated Substances: 

If any person dies due to an accident that happened under the influence of an intoxicating substance, then the insurance company will not claim their life insurance policy. It is crucial to disclose your drinking habit to the insurance company at the time of purchasing the policy. Generally, alcoholics may have to pay a high premium for their insurance policy because they pose a high risk of death. 

• Death Due To Pre-existing Medical Condition: 

Most life insurance plans provide coverage for deaths that happen due to pre-existing conditions. However, if you did not disclose your pre-existing condition when you purchased the policy, the insurance company may deny your claim. As an individual with a pre-existing disease is at high risk, they may have to pay a high premium for their life insurance. 

• Homicide Death: 

The following are some homicide death cases in which an insurance company may deny your claim.

1. If the nominee murders the life assured, the claim will not be settled until the court case is solved and murder charges are dropped. 
2. If the policyholder is found involved in any criminal activity that resulted in his or her death will not be covered by an insurance company. 
3. If the policyholder dies due to any terrorist attack, then the life insurance company will not provide a death benefit to the beneficiaries.

Factors To Keep in Mind To Avoid Life Insurance Claim Rejection

The points that you should keep in mind to avoid life insurance claim rejections are highlighted below. 

1. Do not hide any information relating to your pre-existing conditions, lifestyle habits and others that are asked in the initiation form by an insurance company. 
2. Make sure that you pay the premium for your life insurance policy on time. An insurance company will reject your claim request if you haven’t renewed your insurance plan on time. 
3. Update the information of the nominee with the policyholder. The insurance company is liable to pay the claim amount only to the beneficiary whose name is mentioned in the policy document. 
4. Always read all the terms and conditions mentioned in the policy document carefully. Moreover, know what types of death are covered under this policy before making a purchase.

Conclusion 

In conclusion, there are many types of deaths that are not covered under the life insurance policy. Therefore, make sure that you read all the terms and conditions mentioned in your policy document carefully to avoid any rejections of claims in the future.

Also read: How To Get Duplicate HDFC Life Policy