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Types of Death Events Not Covered in Term Insurance Plans

By Pardeep Garg
  | Published: 19 July 2021

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Term insurance plans are designed to offer insurance coverage to the family of the policyholder in the event of an untimely death. These plans provide multiple benefits for the beneficiaries of the insured persons. However, some death events still remain excluded from the coverage benefits.

It is important to go through the terms and conditions of a term insurance plan before you set out to buy one for yourself. This helps you get a better grip over the upcoming challenges and help you in planning it out better for you and your family. Same is the case with the type of death events that are not covered under your term insurance policy.

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Types of Deaths Not Covered in Term Insurance Plans

Here is a list of the death events that are not covered by most term insurance policy providers.

Death Due to Terrorist Attacks

A death event that occurred due to a terrorist attack will not be covered under a term insurance plan. Although the insured person can do nothing to keep away from such event, it isn’t covered by most insurance providers.

Death Due to Natural Calamities

The insurance companies do not provide term insurance plan coverage for a death that occurred due to natural disasters like floods, earthquakes, etc. Such deaths are not considered for approving a claim. You must stay aware of this fact and inform the beneficiaries about the same.

Due to a Disease that wasn’t Revealed at the time of Buying the Policy

You must disclose your medical history before buying term insurance policy. It helps the providers have a clear understanding of your medical condition. The insurance company will reject all claims if the policyholder fails to furnish the details of a medical condition that ultimately leads to his/her death, However, if the provider is informed, the claims are settled peacefully provided other terms and conditions are fulfilled.

Due to Terminal Disease

Some deadly diseases, such as HIV, final stage cancer, etc., can probably lead to the policyholder’s demise. If the insured person dies due to such conditions, the term insurance will not cover such claims. Some insurance companies in the UAE offer exceptional plans for such illnesses. You may explore these term insurance plans and the rider benefits for these diseases to be doubly sure about getting a claim.

Due to Critical Medical Condition

Most insurance companies offer term plans with critical illness benefits. To take the cover for a specific critical illness that may lead the policyholder to death, they must get in touch with the insurance company. Inform your insurer about your existing medical condition and opt for term plans with a critical illness.

Your insurance provider will approve the claim if the disease was informed of and covered for in the basic policy. 

Death outside the Country

If the policyholder dies outside the country, such claims will not be approved of under term insurance policies. In certain cases, where the policyholder dies while receiving treatment in a foreign land or due to any other reason; the beneficiaries are devoid of the claim.

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Conclusion

The term insurance plans are meant to fulfil specific objectives. One of these objectives is to secure your family from all kind of financial contingencies that may arise in absence of a bread winner. It is important to be well informed of the terms, conditions and reasons that may lead to a claim rejection. It is best to keep your insurance provider about your medical history, fill in the correct information and pay your premiums timely to make the best of your term insurance plan when you need it the most. 

Last but not the least, keep your family informed and updated of all the possibilities that they may have to go though for filing a death claim. This helps them better understand the challenges related to your term insurance plan . Getting a claim rejected is the last thing that a family might want to deal with after the demise of a loved one.

Go through the riders and see what all options can enhance the scope of coverage for your base plan. Moreover, every term insurance plan comes with some unique benefits. Make sure you get to know of all possible benefits that you can avail of as a policy holder to avoid any claim rejections.

You can also compare term insurance plans online and find one that’s meant to cater to your requirement and needs.You can simplify the whole process of selecting and buying a plan simply by logging on to policybazaar.ae. Do it yourself or get in touch with our team of experts who can assist you in selecting the right term insurance plan.