Insurance has become a necessity in today’s world as there is no surety of the future, and you need to get coverage t cover them all and avoid suffering any huge losses. There are various types of insurance policies, and one of the most common types of policy is a term insurance policy. It is a policy that offers you coverage for your life for a certain period of life, which means if you die within that specific period, your nominees will surely get a claim. The most significant benefits of term insurance policies are that you need to pay a low amount of premium as compared to the types of life insurance policies.
Usually, a term insurance policy provides you coverage in case of your death, but there are some cases that are not included in the term insurance policy; which means if the policyholder dies due to any of these causes the insurance company is not liable to pay any claim to his family. It is the most important thing to understand while learning how does life insurance work uk and what is its system of paying claims. You must know about these cases if you are planning to buy a term insurance policy.
Some excluded types of deaths under the term insurance policy
If the policyholder gets murdered
In case the policyholder gets murdered, then the insurance company will not provide any claim if it gets revealed that he was involved in any sort of criminal activity. No payment of claim will be made until the charges and investigation on the policyholder gets closed, and he is freed from all the charges. If the result of the investigation comes in favor of the policyholder, the insurer will pay the claim to the nominees.
If he was under alcohol’s influence
In case the medical report claims that the policyholder was under the influence of alcohol or any drug when he died, the insurance company has full right to hold the claim. Insurance companies don’t insure the lives of people who have a drinking habit. If the policyholder had consumed alcohol when he dies, it means he had kept this fact hidden, which gives the insurer the full right to reject the claim. You must disclose all the information at the stage of underwriting to avoid facing any problem later on.
Smoking is immensely injurious to your health, and if you smoke, you must tell it to the insurer before buying the insurance policy. Smokers are at high health risk, and the premium they have to pay may be higher. If you die because of smoking and you have not disclosed your smoking habit in the policy, then you are not liable to get any claim benefits. You must check all the terms and conditions of the policy and keep no fact hidden from the insurer.
Death while doing any dangerous activity
If you are doing any adventurous or harmful activity and you die while doing that, then that death is not covered by the term insurance policy. These activities are dangerous for your life, and if you still do it willingly, then the insurer is not liable to pay any claim for your death. Some common types of adventurous activities are car racing, Paragliding, hiking, etc.