Listed below are various types of deaths that are not included in your term plan.
1. Driving Under Influence (DUI)
DUI is one of the most common reasons for road accidents. Apart from endangering the lives of the drivers and the passengers, an accident due to DUI can cause many casualties on the road. A term insurance claim will be denied in case if an untoward event occurs by driving under the influence of alcohol or any form of narcotics. Always be careful about this and make sure your family and innocent people do not suffer because of your mistake.
2. No cover for death due to dangerous activities
If you are someone who is enthusiastic about adventure sports then you must know that your term plan will not cover death due to adventure activities. The list includes hiking, skydiving, bungee jumping, and other related activities. The term insurance also does not cover any death caused by vehicle racing as it increases the chance of accidental deaths.
3. Suicide
A very common question asked by policyholders is “does life insurance pay for suicidal death in India” and the answer is ‘no’. However, there are some regulations regarding this clause that every policyholder must know about. If the policyholder commits suicide within one year from the date of policy initiation, then the claim will be completely denied. If the policyholder commits suicide after one year then benefits are reimbursed. Some policy providers return the premium paid during that time. The amount is adjusted by subtracting applicable charges.
4. Pregnancy or childbirth
Pregnancy or childbirth-related death is excluded from the term plan. If the policyholder dies due to any medical issue that is related to pregnancy then the family will not receive the sum assured by the policy provider.
5. Pre-existing health condition
This exclusion is common for all the insurance policy providers. If the policyholder dies due to any health issue that was in existence before buying the policy then it will not be covered by the term plan.
Other than these, there are other excluded deaths from a term insurance policy. Some of these are death due to any Sexually Transmitted Disease (STD), death due to taking part in any unlawful activity, if the nominee murders the policyholders, and death by natural disasters. The latter can be covered if you buy a rider with your term plan.
