Term life insurance is a type of life insurance policy that pays out a death benefit to your beneficiaries if you pass away while the policy is in force. When it comes to the types of death that are covered by term life insurance, most policies cover any death, whether natural, accidental, or self-inflicted. However, there are some exceptions to this rule that you need to be aware of.
Types of Death Not Covered by Term Life Insurance
While most life insurance policies cover any type of death, there are a few exceptions that you need to be aware of:
| Type of Death | Explanation |
|---|---|
| Pre-existing medical condition | Your life insurance policy may not pay out if you die due to a pre-existing medical condition. |
| Suicide | If you die due to suicide, your life insurance policy may not pay out due to the suicide clause that most policies have. |
| Alcohol or drug abuse | Your life insurance policy may not pay out if you die due to alcoholism or drug addiction as insurers consider these to be self-inflicted deaths. |
| Criminal act | Your life insurance policy may not pay out if you die due to a criminal act. |
It is important to read the fine print of your life insurance policy to ensure that you understand what is and is not covered. If you are unsure about what your policy covers, you can contact your life insurance company or agent for specific information about your policy and to answer any questions you may have.
Now that you know what types of death are not covered by term life insurance, you can make an informed decision about your life insurance coverage. Remember that the best way to ensure that your beneficiaries receive the death benefit is to keep your policy in force by paying your premiums on time.
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Article Sources
- Royal London. What Kinds Of Deaths Are Not Covered By Life Insurance?
- Legal & General. What Does Life Insurance Cover?
- Legal & General. Types Of Death Not Covered By Term Insurance
- LifeInsure. Types Of Deaths Not Covered By Term Insurance
- comparethemarket.com. What Types Of Death Are Covered By Life Insurance? (2023)