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
2. Death due to committing suicide
3. Death caused as a result of participation in dangerous activities
4. Death caused due to pregnancy or birth of a child
5. Pre-existing health conditions
7. Death caused due to natural disaster
8. Death due to sexually transmitted diseases
9. Participation in illegal activities
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.