welcome to Life Assistant IMF, We're here to help you
+919528544769
A-12, opposite NABARD IT Park
Sahastradhara Road, Dehradun
09:00 am - 07:00 pm
Every Daywelcome to Life Assistant IMF, We're here to help you
A-12, opposite NABARD IT Park
Sahastradhara Road, Dehradun
09:00 am - 07:00 pm
Every Day
Under Term Insurance, on the demise of the insured (policyholder), the death benefit is paid to the nominee. The pay-out can be either in monthly installments, lump-sum amount, or both, which can be chosen while buying the term life insurance policy.
Even though term plan gives protection to the dependents or the family members of the policy holder against untimely death, insurers classify such deaths into various categories, based on which deaths are covered or not covered. However, not many know that there are certain kinds of deaths that are not covered under term insurance plan.
No claim will be settled by the insurer if the policyholder is murdered and investigations reveal the nominee was involved in the crime. The insurer withholds the payout indefinitely, till resolution of the case in favor of the nominee.
Death due to the involvement in any type of criminal activity as defined by the law will not be covered under the policy. The insurer will not settle the claim if it is found that the policyholder was involved in some criminal activity.
However, if policyholder has a criminal background but dies due to any natural uncertainty, the nominee will get the death benefit.
Insurance companies rarely issue insurance policies to those people who drink heavily or consume narcotic substances. It is essential that you disclose these details to your insurer. Failure to disclose these habits could lead to denial of the claim if death was due to driving under the influence of alcohol or narcotic substances.
Death by participating in an adventure or hazardous activity such as car and bike racing, skydiving, paragliding, parachuting and hiking is not covered by term insurance, if not disclosed while availing the policy.
The insurance company will not accept the claim if the death of the insured occurs due to any condition that existed while availing the insurance policy. In case the death of the policyholder happens due to self-inflicted injuries or a hazardous activity, sexually transmitted diseases like HIV or AIDs, drug overdose unless covered by a rider, the claim made by the beneficiary will be rejected by the insurer.
In case the death occurs due to pregnancy complications or childbirth, the insurance company would not pay the sum assured to the nominee.
In case the life insured commits suicide within the first year from the date of issue of the policy, the beneficiary will not get the death benefit. However, most of the insurance company provide suicide coverage from the second year onwards from the date of purchase of the policy, subject to terms and conditions.
If an insured dies due to an earthquake, or tsunami etc or any other natural calamity then the nominee will not get the claim from the insurance company until and unless the insured has opted for any rider benefit for the same.
If the policyholder gets murdered by the nominee and the investigation reveals the involvement of the nominee in the crime, death benefit pay-out will be rejected or withheld until the nominee gets the clearance.
All in all, prior to purchasing a term plan, it is highly recommended to go through your policy document and understand the terms and conditions of the term insurance policy. Proper knowledge of the inclusions and exclusions of term insurance prevents disappointment during claim settlement.