It’s only because of that lump sum monetary death benefit that policyholders opt for the term insurance plans. And when someone visits an insurance office, the professional may tell you that they cover all death types in that plan.

Even if they tell you at first that they provide death benefits for natural and accidental deaths, you might end up knowing that there are certain death cases that do not have the likability to give you the death benefits. Besides having an in-depth understanding of your retirement policy, you should also make a note of a couple of times when you don’t receive death benefits. So, let’s check them, one after the other!

Due to Unshared Preexisting Illness

Death due to untold preexisting illness of the policyholder doesn’t get covered under the policy. People having sexually transmitted diseases like AIDs and drug overdose usually cannot get settlements by the insurers. If you are facing a life threatening illness, you might have the option to sell your life insurance policy through a viatical settlement to help fund medical bills and other expenses.

Consumption of Alcohol

The claim immediately gets rejected if the policyholder dies under the influence of alcohol or even narcotic substances. Suppose the insured dies out of drinking and driving. In such a case, the insurer rejects to pay the sum assured to the nominee.

Hiding Smoking Habits

Smokers should always disclose this habit to the insurer right before availing of the term plan. As smokers have greater health risks, an insurer would add a load (or the additional amount to his premium. If the death occurred due to smoking and the information was kept unshared, then the nominee doesn’t receive even a single penny.

Policyholder Gets Murdered Due to Criminal Activities

The nominee doesn’t receive the claim if a policyholder gets murdered. If investigations reveal that the insured was involved in criminal affairs, the claim immediately receives a denial.

For another condition, the insurer doesn’t settle any claim if the insured gets killed due to his involvement in illegal or wrong activities as a criminal.

Childbirth or Pregnancy Complications

If the policyholder’s death occurs due to pregnancy complications or childbirth, the insurer doesn’t pay the sum assured to the nominee.

Participating in Hazardous Activities

Exploring intriguing adventurous activities might bring your enthusiastic soul alive. But unless you’re extra sure of your success, stop there right away! If the death happens due to participation in those hazardous activities because of a fatal accident, the insurance company has a higher chance to reject the claim.

Suicidal Death

When the policyholder commits suicide right within the policy term’s first year, the nominee does not receive death benefits. A majority of insurers offer death benefits to the nominee if the policyholder dies (due to a suicidal attempt) in the second year of the policy.

Because of Natural Disaster

If the policyholder dies because of a natural disaster (like a hurricane, hailstorm, or earthquake), the nominee doesn’t receive the claim!

An Endnote

Just in case you are wondering about buying a term plan, it’s imperative to keep these death cases in mind. Keep a note of these death cases before you buy a term plan.