Life insurance does not get claim on death due to these 6 reasons including addiction and adventure sports

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  • Death in the accident of the term planner is also covered under the policy
  • In case of death due to drug or alcohol overdose, the claim is rejected.

People take term plans to provide financial security to their family. But before taking term life insurance, it is very important to know that it does not cover all types of death. Claims are paid only if the policyholder has died due to reasons covered under the term plan. If the death is due to any reason which is not covered in the plan, then the claim can be rejected. And your family will not get insurance money.


Covered on death due to these reasons

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Natural death
term insurance covers death due to natural death or health reasons. Even on death due to critical illness, you get insurance cover money.

The accidental
death of the Accident Term Plan taker is also covered under the policy. In addition to immediate death in the accident, coverage is also available for seriously injured and later death. But a claim will not be found on an accidental death while intoxicated. In accidental death while working in a house or factory in Accidental Death, falling off the roof, sudden fire and sinking in the river etc.


The suicide
insurance regulator IRDA has made changes in the suicide clause under life insurance from 1 January 2014. According to this, if the policyholder commits suicide within one year of taking the term plan, then the nominee is entitled to get 100% policy fund value in case of linked plan (ULIP). In the case of non-linked plans, the nominee will get 80 percent of the premium paid.

Due to these reasons, death will not get insurance claim money

Death due to intoxication
If the term policy taker is driving while intoxicated or has taken drugs, the insurance company may refuse to give the claim amount of the term plan in case of death. Apart from this, the claim is also rejected in case of death due to overdose of drugs or alcohol.

Assassination of a
policyholder: The policyholder should be killed and the nominee has a hand or is accused of murder. In such a case, the claim will remain on hold till the request, till 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.

Hurt Yourself
If the policyholder is fond of adventure sports and has died while committing some dangerous activity, the insurance company will reject the term plan claim. This includes death from car or bike races, sky diving, scuba diving, para gliding and bungee jumping, etc.

Death due to a chronic illness,
if the person has an illness before taking a term policy and he has not informed the insurance company while taking the policy, then the insurance company can reject the claim in case of death from that disease. Apart from this, death from HIV / AIDS is also not covered by term insurance.



Death by natural disasters
like if a policyholder’s death, natural disaster earthquake or are unclaimed insurance the nominee if the storm etc.

Death at the time of childbirth
If the policyholder dies due to some reason while giving birth to the child, in this situation the nominee would not get compensation. Common term policy does not cover death due to any disturbance during child birth.

What is term insurance?
Term insurance is a type of life insurance policy that provides coverage at a fixed payment rate for a limited period. If the insured dies during the term of the policy, the death benefit amount is paid to the nominee. It provides financial security to the family in the event of uncertainty or death.

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