Term insurance plan is an insurance plan that offers coverage to your family in case of need when you will not be there to provide the needful financial assistance to meet daily expenses and financial goals as well. When it comes to securing the future of loved ones you will always think of doing the proper financial planning and investing in a term insurance plan can easily help you with that. It will provide the needful support in the case on any eventuality. A lump sum amount as death benefit will be paid to the nominee in case of insured’s death during the policy’s tenure.
Even term insurance plan is designed in a way that can offer the required coverage to the beneficiary as per the policy’s documents. But still there are a few death cases which would not be able to get the required cover and you should know about them as well as only a complete safety would be able to offer the required coverage to the family in case of need. In this article, we will discuss all deaths which are liable to get the coverage or not.
Natural Death or caused by Health-related Issues
When it comes to natural death, the ratio of the same is really high in India. You don’t have to worry about it as the term insurance will provide the needful cover against natural death which takes place because of critical illness or medical condition. The nominee will be liable to avail policy’s benefit. He/she will receive the sum assured in the form of the death benefit.
Term insurance policy will be there to offer the needful coverage in case of the demise of the insured because of the accident also. Moreover, there are many term insurance plans that offer the same coverage under the additional rider and for the same, you have to pay an additional premium along with the basic one. In case of accidental demise of the insured, the nominee will get the death benefit.
However, a few things can lead you towards the rejection of the claim like-if the insured face an accident under the influence of alcohol or drugs then the term plan will not be liable to offer any benefit. You must go through the policy’s document before taking any final decision.
Death by Suicide
In the case where the insured commits suicide in the first year of the policy, then the beneficiary will get 80 percent of the paid premium back but it varies from insurer to insurer and plan to plan. In the case where the insured committed suicide after the 1 year of policy then the policy will be nullified and it will get terminated. There are a few insurance companies which may or may not offer coverage against suicidal death. Apart from this, it is important for all customers to check the policy’ documents before proceeding further.
In a case where the beneficiary killed the insured and it is get cleared in the investigation then the insurance company will reject the claim.
Tsunami or Natural Calamity
In a case of insured’ death because of a tsunami or any other natural calamity the insurance company will not be liable for any coverage until the insured opt for a term rider benefit at the time of purchase.
Claiming for more than two policies
If the nominee is going to file a claim for two insurance policies then he/she should follow the guidelines of the Insurance Regulatory and Development Authority of India for the same.
The Bottom Line
Before purchasing term insurance plan online, it is very important for the customer to check the policy’s documentation. With the help of proper knowledge about all inclusions and exclusions of the policy that can help the insured in getting the coverage and prevent any type of discrepancy during the claim processing. To choose the best term insurance plan, you must take help of an online insurance web aggregator like PolicyX. It will help you with free quotes with the same, it will become quite easier for you to get the best one according to your needs.