Term Insurance Policy: What are the Elements Not Covered
Term insurance policies are popular because they are affordable and cost effective. Some elements not covered in it are certain types of deaths that fall into the category of accidental death, caused by certain illnesses, suicide and homicide.
Term insurance policies have gained immense popularity over the last few years. This is because they are easy to purchase, cost-effective, and offer a lump-sum amount in the case of a death claim. The benefits and riders offered by term plans help people and their families leverage their plans to the fullest. Purchasing a term plan is investing for one’s peace of mind as the dependents receive the benefits and coverage.
If the life insured of a certain term insurance policy passes away suddenly, the nominee or beneficiary will receive a death claim payment from the insurance company. This process is known claim settlement, and the death benefit is known as pay out.
Even though term policies cover sudden deaths, there are certain deaths falling into certain categories that are typically not covered by term plans. Mentioned below are the types of deaths that are covered and not covered by term insurance policies:
Death Caused by Accident:
If a policyholder dies in an accident (road, railway, etc.), the nominee/beneficiary receives a payout from the insurer either in installments or lump sum. This includes on-the-spot death caused by a road accident or death after a few days in the hospital. However, if the policyholder was intoxicated during the accident, or was involved in some criminal activity (during the accident), or if the death was caused by an adventurous sport like race car driving, then the insurer will not provide the payout.
Death Caused by Other Illnesses:
If the policyholder dies due to health-related issues or a specific illness like cancer, then the insurer is liable to provide the policy payout amount to the nominee.
With the establishment of the new suicide clause by the Insurance Regulatory and Development Authority of India (IRDAI), if the policyholder has committed suicide within a period of 12 months since the commencement of the policy, then the insurer will provide the applicable money to the nominee. However, this rule is applicable only to linked plans. In the case of non-linked plans, 80% of the total premiums paid will be given out by the insurance provider within a timeframe of 12 months since the commencement of the policy. Compensation of the death benefit will only be made available if the policy premium has been paid regularly for 12 months at least.
If the policyholder is murdered during the term of the policy, then a thorough investigation is conducted first in order to determine the culprit. However, if the nominee is found involved in the crime in any way, then he/she will not receive the payout from the insurer, at least till proven not guilty and acquitted. In cases like this, the payout amount is typically withheld by the insurer indefinitely till a resolution is passed.
Apart from the factors mentioned above, if the policyholder dies due to smoking, drinking, or consumption of substances, the death benefit can be withheld by the insurer, if the policyholder had not mentioned about the same during the purchase. Insurance providers are usually reluctant towards such lifestyle habits and may refrain from issuing a policy to a person with such tendencies altogether.
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Term Insurance Policy: What are the Elements Not Covered Reviews
I have too many of policies with LIC and its good. The benefits are good and well explained by the agent. The payment mode is ECS and am getting the statements and notification through SMS. Even the agent is doing good support and the plan was taken for future savings purpose.
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Reviewed on Oct 17, 2019
I have taken a life insurance on HDFC LIFE on 5 months before only. The policy is for 20 years. I am paying premium on monthly package the amount which is nominal. While getting a policy my agent has given an information about the policy details. My father has taken an insurance for me. Use to do payment through an online. It covers up to myself only.
I have taken Life Insurance policy direclty through LIC agent .I have got all the information abotu the policy very clearly through the agent.This policy is fo the tenure of 25 years and need t pay the premium once in 3 months .I am paying the premium through cheque it will be given to the agent .
I have availed Life Insurance policy through LIC agent only.This was a Jeevan Saral Policy and the tenure is for 15 years.This was a Money Back policy and the premium is paid on ome time only and it was less .I have got my policy documents on time and got all the relevant details about the policy very clearly through the agent .
I have taken Life Insurace policy trough LIC agent direclty .Ths was a Money Back policy for the tenure of 20 years .I am paying the premium through online .Premium is very nominal and got all the relevant details about the policy very clearly through the agent I am paying the premium on yearly basis.
I have Life Insurance policy which was taken direclty through LIC agent.This was a Jeevan Anand policy which is a Maturity benefit policy for the tenure of 20 years .The premium is paid on quarterly basis and there was no difficulties faced so far when availed this policy.I will be paying the premium through the agent.
I have taken a life insurance in LIC on 9 years before. The policy is for 15 years. I am paying premium in the quarterly package the amount of 6 thousands which is nominal. While getting a policy my agent has given an information about the policy details. It covers myself and children. It is a jeevan anadha policy.
I have taken my life insurance policy from LIC. It was a Jeevan Umang. Its almost 150 years old which covers for 95% and the people invested in LIC is higher when i compared to others. This policy has two benefits one its a life insurance policy and other is pension covered policy. After 60 of years of age, i will get the pension.
One month before I have taken a personal loan so they made to take life insurance with LIC company. On one payment need to do fully. In case if we missed to do payment or for some other reason unable to do from insurance they will claim full amount. Myself applicable for 10 lakhs but taken for 5.5 lakhs.
I have taken a life insurance in LIFE INSURANCE CORPORATION OF INDIA on one year before. I am paying premium in the quarterly package for the amount of 2065 rupees.While getting a policy my agent has given an information about the policy details. It covers my mother only.
I have taken Life Insurance policy through LIC agent.This is a Money back policy and this tenure is for 25 years,I am paying the premium on monthly basis.I am paying Rs.2168 and paying the premium through online only .I have got the policy documents on time .I am really satisfied with the service so far.
I have taken a life insurance in ICICI PRUDENTIAL on 6 months before. The policy is for 15 years. Now I am paying premium for 25 thousands rupees. While getting a policy my agent has given an information about the policy details, however there are some charges applicable.
I have taken a life insurance in LIC on 1 year before. The policy is for 20 years. I am paying premium on monthly package. While getting a policy my agent has given an information about the policy details. It covers myself. The amount will get auto debit from my account. It is jeevan anadha policy.
I have taken a life insurance in LIFE INSURANCE CORPORATION OF INDIA on 8 years before. The policy is for 20 years. It is a jeevan anadha policy. I am paying premium in the yearly package paying for 12 thousands. While getting a policy my agent has given an information about the policy details. It covers up to myself.
My friend has suggested me a money back from SBI LIFE. I got the policy 2 years before. I have been paying the premium amount of Rs. 7000 for every six months. I make the premium through ECS. Just for the savings purpose, i bought this policy.
One of my asked me to join in a Bajaj allianz life insurance policy. This is also money back policy. I pay the premium amount of Rs. 5000 and i have chosen the quarterly payment mode. I bought the policy 8 years back. Once the amount got credited to my account.
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Reviewed on Oct 14, 2019
There is no reason for choosing the life insurance policy from LIC. I hold a money back policy because every 5 years, i get the full money back to my account. I have been paying the premium amount of Rs. 1500 every month. I have no idea about the sum assured amount and the policy has a term of 15 years.
I have chosen the life insurance policy from Exide because its easy approved term policy which covers Rs. 30 lakhs for any type of death. Its covers for both life and accidental. I have been paying the premium amount of Rs. 10,200 and i have chosen the yearly payment mode. This policy covers upto 52 years of my age.
I have Life Insurance policy which was directly taken through LIC agent .This policy tenure is for 15 years and i am paying the premium within 6 months .I have got all the details about the insurance policy very clearly through the agent and paying the premium through agent.I am really satisfied with the service so far.
I'm getting the complete benefits in LIC. I took the life insurance policy 15 years back. I have been paying the premium amount of Rs.7000 for every six months once. They have offered me a term period of 20 years. I make the premium in their branch by cash.