Life Insurance:

Due to these 6 reasons, term plan claims are not available at the time of death, check before taking out a policy.

When it comes to life insurance, people often choose a term plan.

Term Life Insurance:

When it comes to life insurance, people often prefer a term plan.  In Term Insurance, in case of death of the policyholder during the term of the policy, the sum insured under the policy is paid to the beneficiary.  There is no maturity benefit in this type of life insurance policy.  It is important for the person taking out term life insurance to know that it does not cover all types of deaths.  Claim money is only available if the policyholder dies due to being under a term plan.  In case of death due to any reason not included in the plan, the claim may be rejected.

Due to these reasons death is covered

Health / Deaths due to natural causes: Term insurance covers natural deaths or deaths due to health reasons.  Beneficiaries get a claim even if they die due to serious illness.

Accidental Death: Accidental death of the term plan recipient is also covered by the policy.  In addition to instant death in an accident, coverage is also available for serious injuries and subsequent deaths.  But there will be no claim of death in an accident while driving while intoxicated.  In addition, the claim will be rejected even if he dies in an accident due to his involvement in any criminal activities.  Accidental, unexpected deaths also include accidental deaths.  However, the death benefit clauses differ in different insurance companies.  Therefore, before adopting a policy, these clauses should be thoroughly investigated.  Here are some common types of accidental deaths.

Factory equipment injuries, falling from buildings or roofs, sudden fires, slipping in bathrooms, death due to electric shock, drowning in river, etc.

There are 8 types of life insurance policies, choose according to your needs

Death is not covered by these reasons

Assassination of the policyholder:

If the policyholder is killed and the role of the nominee is revealed or he is charged with murder, the insurance company may refuse to pay the term life insurance claim.  In such a case, the claim will be suspended until the nominee receives a clean chit, meaning that he or she will be acquitted.  If the policyholder is involved in any criminal activity, even if he is killed, he will not get the insured money.

Deaths due to intoxication:

Insurance companies do not issue any policy for those who drink excessively.  The claim that a policyholder dies due to overdose of drugs or alcohol is also rejected.  Also, if the policyholder drives under the influence of alcohol or takes drugs, in case of death, the insurance company may refuse to pay the amount of the term plan claim.

Khatran Ka Ho Khiladi:

If the term plan holder chooses to play with danger and dies while engaging in some dangerous activity, the insurance company will reject the claim.  Any activity that can be life threatening can come under this scope, such as car or bike race, para gliding, sky diving, bungee jumping etc.

Deaths from natural disasters:

If the policyholder dies in natural disasters such as cyclones, earthquakes, tsunamis, floods, fires, etc., However, if the policyholder has a separate rider without a term plan for it, then the benefit will be available.

Death due to a chronic illness: If the policyholder has a disease before taking out a term policy and he does not provide complete information to the insurance company at the time of taking the policy, the insurance company may reject the term claim.  Plan in case of death due to the mentioned disease.  Deaths due to HIV / AIDS are also not covered under the term plan.

Suicide:

IRDAI has changed the section on suicide under effective life insurance from January 1, 2014.  Policies issued prior to January 1, 2014 contain the old suicide clauses, while new suicide clauses are being applied to subsequent new policies.  While some insurance companies offer coverage in case of suicide, some do not.

In the case of policies prior to January 1, 2014, there is an old clause that the claim cannot be met if the insured commits suicide within 1 year of taking or revoking the policy.  In the case of some insurance company policies, the waiting period is also 2 years.  Therefore, it is important to read the terms carefully before taking the policy.

The rule for policies issued after January 1, 2014 is that if you commit suicide after one year of taking the policy, the policy will be canceled and no benefit will be available.  In the case of Linked Plan, the nominee is entitled to 100% of the policy fund value if the policyholder commits suicide within one year of taking the term plan.  Where in case of non-linked plan, you will get 80% of the nominated premium.