Term insurance is one of the most important things we can do for our family. Till the time we are with them, they can rely upon us that we will do everything for them. However, if we meet with a mishap and lose our lives, they will not only be emotionally broken but can go through a lot of financial hardships as well. This is a situation we cannot let our family members go through, especially if you have debts or lack liquid assets, and that is what makes term plans so significant. Once you have a term insurance plan, you can rest assured that if you are not around, your family will not have to worry about their finances.

Nevertheless, just because you are buying a term plan, does not mean your beneficiary can always claim the cover, especially if the cause and circumstances of the death are not covered under the plans. There are many kinds of deaths that are not covered under popular term insurance plans.

What kinds of deaths are not covered in a term insurance plan?

• If the insured did not disclose the habit of smoking: Smokers have higher health risks and the insured may have to pay an additional amount to their premium. However, if they did not reveal their habit of smoking to the insurer at the time of buying the term insurance, and later they die because of complications that happened due to smoking, the claim of the beneficiary may get rejected.
• If the insured dies under the influence of alcohol: If the death happened because the insured was under the influence of alcohol, the beneficiary’s claim will get rejected.
• If the insured was murdered: If the policyholder was murdered, and the beneficiary is found to be involved in the murder case, the claim will be rejected. If the insured was involved in some kind of criminal activity and which resulted in a murder, even in that situation, the nominee will not be able to claim the cover.
• Death because of pre-existing health conditions: If the policyholder had some health issues which he/she did not disclose while buying the plan, and later the individual dies because of the same health condition; will result in a rejection of the cover.
• Suicidal death: Most of the term insurance companies offer cover if the insured commits suicide after two years of buying the term plan. However, if the policyholder commits suicide in the first year of purchasing the term insurance plan, the nominee will not be able to claim the cover at all.
• Death because of natural disaster: If an insured dies in a natural disaster, the nominee of the plan will not be given any coverage. Natural disasters or calamities can be an earthquake, tsunami, hurricane, etc.
• Death due to childbirth: If the policyholder loses life during childbirth, the insurer will not pay the cover to the beneficiary.

Many come up with the question “is accidental death not covered in term insurance”?  As the accident is investigated, it totally depends on the circumstances of the accident. For policyholders who meet with an accident under the influence and die; the insurer will certainly reject the claim of the nominees.

Therefore, before you sign the papers of the policy, you must check all the clauses. And in case of any kind of confusion, you can even clear all your points by discussing the same with the insurance companies. You can also compare the policies and buy the one that suits your needs. To compare several term insurance policies, you can visit IIFL Insurance today. You will not only have a clear idea of term insurance but also various other types of insurances.