Does Life Insurance Pay For Natural Death? 
Yes , life insurance does pay for natural death -LRB- death due to natural causes such as illness or old age -RRB- . Accidental death insurance does not pay for natural death . Graded life insurance policies will pay a reduced amount for the first 1-3 years for natural death , depending on the features of the policy . After the graded period has passed , graded policies will also pay 100 % for death due to any reason , including natural death . 