Life Insurance: The person takes life insurance, especially term plans so that his family does not have to face a financial crisis after his untimely death. He was relieved to a certain extent after receiving Claim’s money. But before taking life insurance, know that it does not cover all types of death. Claim money is received only when the death of the policyholder is due to the reasons covered. If the policyholder dies due to any reason other than those reasons, the insurance claim can be rejected. Let us know about those types of deaths that are not covered by term insurance.
Death by suicide
If the person commits suicide during the initial 12 months from the date of commencement of the policy, the beneficiary gets 80% of the premium paid (in case the policy is non-linked). In case of linked plans, if the policyholder commits suicide within 12 months from the date of commencement of the policy, the beneficiary will get 100 per cent of the total premium paid. However, if the policyholder commits suicide after completion of one year of the policy, then their benefits will cease and the policy will end. There are some life insurance companies, which cannot and do not give coverage on death by suicide. It is important that the person read the terms and conditions of the policy before purchasing it.
Death due to some dangerous activity on its own
If the policyholder is fond of playing with the dangers and he dies while doing some dangerous activity, then the insurance company will reject the claim of the term plan. Any life-threatening activity can come under this scope. This includes adventure sports, such as car or bike races, sky diving, para gliding, bungee jumping, etc.
HIV / AIDS
The insurance company will not approve the claim if the insured person dies due to any sexually transmitted disease, such as HIV or AIDS.
Death due to intoxication
If the term policy taker is driving drunk or has taken drugs, then in case of death in this situation, the insurance company can refuse to give the claim amount of the term plan. In case of a policyholder who dies of drug or alcohol overdose, the claim is rejected.
the killing
The insurance company may refuse to give a term plan claim if the policyholder is killed and the nominee’s role in it comes to light or he is accused of murder. In this case, the claim request will be on hold until the nominee gets a clean chit, that is, he is not proved innocent. Apart from this, if the policy holder is involved in any criminal activity, he will not get the amount of insurance even if he is killed.