types of deaths not covered in term insurance
Types of Deaths Not Covered in Term Insurance

Types of Deaths Not Covered in Term Insurance

Life is unpredictable and no one knows when will they breathe their last. To mitigate the risk of life unpredictability today we have a solution in term insurance plans. Term insurance plans are simple, affordable and easy to basic life insurance policies. These plans provided by insurance companies help the insured person to feel secure and content about his or her future. Though the event of the death of a loved one cannot be replaced; term insurance plans shall always be the financial protection umbrella for the family of the insured in times of a tragic event.

These plans provide death benefits to the nominee in case of the untimely death of the insured during the active term of the term insurance plan. These benefits are paid on a lump sum or monthly basis or both depending upon the choice made when the term insurance policy was purchased. These plans also provide for additional optional rider options for the extra premium amount. These options provide additional protection and enhance the value of the plan. However, are all deaths covered under term insurance plans? Or there are some certain types of death uncovered? This article throws light on the types of deaths that are not covered under term insurance plans.

1. Death due to driving under the influence of alcohol

The terms and conditions for term insurance plans are simple to understand. It clearly states that accidental death caused due to driving under the influence of alcohol shall be excluded. In other words, if Mr. A is driving his car under the influence of alcohol and meets with an accident resulting in his death then the claim put for the term insurance plans may be rejected. The claim shall also be rejected by the life insurance company even if narcotic substances are involved that is death caused due to the consumption of drugs and other substances.

2. Death due to committing suicide

All term insurance policies do not include cover for suicidal deaths. It is a common exclusion. If the insured commits suicide within a year of inception or revival of the policy then the claim shall not be admitted or payable to the nominee. However, some insurance companies return the premium paid by the policyholder after deducting some expenses, if any. Deaths due to any self-inflicted injury are excluded.

3. Death caused as a result of participation in dangerous activities

Where adventure sports are involved, protection by term insurance plans is excluded. Adventure sports such as skydiving, parachuting, hiking, etc are specifically excluded from term plans. It also excludes activities such as car and bike racing. These possess high risk and are fatal.

4. Death caused due to pregnancy or birth of a child

The insurance company shall not be liable to pay the nominee in cases where a death is caused due to complications arising from pregnancy or while giving birth to a child. Term insurance policies do not provide for the same.

5. Pre-existing health conditions

Where a person loses his life due to an illness which was already declared by him while purchasing a policy then the insurance company shall not provide for the same. The nominee shall not be able to receive any benefits under this type of death.

6. Homicide

If the nominee is himself involved in the death of the insured then the death benefit payout to the nominee will be rejected. Killing a person for the sake of money is a gruesome crime against humanity. Hence, insurance companies do not support such activities.

7. Death caused due to natural disaster

Natural disasters such as earthquakes, tsunamis are troublesome. However, any death caused due to its occurrence is not included in term insurance plans.

8. Death due to sexually transmitted diseases

Sexually transmitted diseases such as HIV AIDs are outside the ambit of term insurance plans. Where a person loses his life due to such diseases, the term insurance policy does not provide for the same. Hence, the nominee shall not be able to reap any benefits of the insurance plan.

9. Participation in illegal activities

The term insurance plan excluded deaths of a person who loses his life due to participating in any illegal activity.For example, any person dealing in drugs is carrying on illegal activity. If he gets killed in an encounter by the police then the death of the insured shall not be covered under the policy.


The above exclusions should not act as an obstacle for purchasing a term insurance policy. A policyholder should always read the terms and conditions properly before purchasing the term life insurance plans. It is advisable for a policyholder to look at various aspects of the policy and his lifestyle and then make decisions to which policy suits him or her the best. It is best to make use of the term life insurance calculator online to compare various plans and then buy the one that fits all your expectations.