10 Major Death Cases where your Term Plan might not help you:
1) Death due to intoxication: The insurance company will not pay the death benefit if the policyholder dies while driving while intoxicated or as a result of a narcotic overdose.
2) Death due to hazardous activities: Adventurous activities like hiking, parachuting, paragliding, skydiving, bungee jumping etc. are considered a threat to the policyholder's life. Hence, most insurance companies exclude death due to these activities in their offers.
3) Death due to natural calamity: Death caused due to any natural disaster or act of god like a Tsunami, Earthquake, or flood, is not covered by Term Insurance, unless, you have opted for any particular riders for that purpose.
4) Death Due to Terrorist Attacks: If the policyholder dies due to terrorist attacks then such deaths can't also be claimed by the beneficiary.
5) Suicidal death: If the insured commits suicide within the first year of the policy term, then the nominee will not get the death benefit. Some insurers provide suicide coverage from the second year onwards.
6) Death due to terminal disease: Some Plans cover the death that occurred due to a critical illness, like cancer, or organ transplant while others may require you to buy a critical illness rider. If your plan does not offer this cover, you should buy the related rider.
7) Death due to childbirth: Many life insurance policies excludes death that is caused by any pregnancy complications or childbirth.
8) Death due to an undisclosed habit or disease: It's very important that you disclose each and every detail related to life and lifestyle like smoking, drinking or any pre-existing illness. Failure to do this may lead to denial of the claim.
9) Homicide: In case any investigation reveals the involvement of the nominee in the death of the insured, then the nominee is not entitled to death benefits until the judiciary acquits the nominee.
10) Death due to man-made calamities: Man-made disasters, such as war, armed or unarmed truce, civil war rebellion, riots, strikes, military usurpation, invasion, etc, are not covered in life insurance plans
It is imperative that you carefully read the terms and conditions of any term policy before purchasing a term plan. It can assist you in staying informed about the risks associated and coverage offered under different plans.
While buying a term plan you must evaluate your needs and financial obligation and then choose the right sum insured for yourself.
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