When it comes to claiming settlement for the sum assured in a term life insurance plan, the following deaths are considered valid by an insurance company:
– Natural death caused by factors, such as age or a medical condition.
– Death due to a critical illness such as cancer, stroke, etc.
– Death due to an accident is also covered. Some plans also offer additional pay outs to the nominee in the event of an accidental death.
– Death due to a natural calamity like an earthquake, flood, hurricane, tsunami, etc. is also covered under the plan.
The following deaths are not included in a term life insurance plan:
– Self-inflicted harm or death caused by suicide is not covered under term insurance.
– Death in a homicide that involves the nominee is not covered under a term insurance plan. In such cases, a proper investigation will be conducted.
It is important to know these aspects before purchasing a plan. You can also read the policy document to be sure of which kinds of deaths are not included in your term insurance.