Securing a future for your loved ones is a critical decision that one needs to make.
It needs proper planning. Insurance plans come in handy at such a time to secure a future for your dependents.
These plans ensure financial protection to your loved ones in case of any eventuality.
There are deaths that may cause your life insurance to be denied.
However, there are actual surprising deaths that life insurances cover that are not clearly thought of.
When it comes to issues pertaining life and death then one needs to understand how these life insurance policies work.
This act of getting life insurance should not be seen as an investment.
It is still the same as paying for your car premiums; your loved ones are the ones that will get the full benefits in case of an unfortunate accident.
We will hereby discuss the deaths that are actually covered by life insurance policies.
- Accidental death.
This type of death is described as an involuntary, a sudden or an unforeseen death event.
These accidental deaths covered helps the dependents to pay off the medical bills and also maintain their current lifestyle.
In as much as there might be several exclusions to what caused the unfortunate event of death of the insured, these exclusions vary with different insurance companies.
It is therefore advised that you read your life insurance policy and understand.
- Sudden death.
This is a situation where one gets a life insurance plan without knowing they will face their demise within a few months.
Insurance companies consider what is known as contestable period.
This period gives the insurance company time to investigate your details.
If you should die within this period of the first two years of your policy, then your policy holder is free to start an investigation that may have requests such as the following:
- They may order for your medical records.
- They may order for your autopsy report.
- They may get an order from your policy holder agent or rather your insurance agent.
- They may ask to interview your friends and relatives. Those that related with you more closely.
However, once the contestable period is complete, your policy holders cannot dispute your insurance cover and will make payments to your beneficiaries, that is unless there was a deliberate claim misrepresentation.
- Going missing: If you go missing there are two possible scenarios that can be explained.
- If at all there is proof of what caused your death. For example, if you were involved in an aircraft crash or you are involved in a shipwreck, the courts will declare you dead.
- If no proof of death is found. For example, you go out on a walk, you get kidnapped and you become forgetful or rather you are stricken with amnesia and afterwards you are not traced. In this case your loved ones will have to wait for seven years for you to be declared dead. Moreover, your beneficiary must continue to make your premium payments during that period for them to get your death benefits.
- If you face your demise in a car crash while being intoxicated.
In this case scenario, even if you caused the accident, your insurance company should pay out.
However, if the insured was covered for accidental death on top of the regular policy and give an added amount in any case of a fatal accident the insurance may not be paid.
This is among reasons as to why you should be keen enough while choosing a life insurance policy.
- When you commit suicide.
After the contestable period of two years of getting your life insurance policy are done, and you commit suicide after that contestable period, your beneficiaries will be paid off the death benefits in full amounts.
However, if you commit suicide within the contestable period of two years then the death benefits to your beneficiaries may be denied.
- In case of an assisted suicide.
The physician assisted suicides still fall under the suicide category in an insurance company.
Assisted suicide is an act of suicide that one can assist another person to bring an end to their life.
This includes providing someone with strong sedative drugs so as to end their lives.
For as long as your contestable period is finished your life insurance benefits will be paid in full to your beloved ones.
- When you die of an overdose.
An overdose is a non-intentional poisoning of medication or drugs.
Policy holders consider this type of death as suicide.
This kind of death after the constable period of two years the beneficiaries are paid in full.
If this kind of death occurs within the two years then the insurance companies may not pay the death benefits to your beloved ones.
- Death as a result of old age.
If your death happens after getting to an old ripe age and you have been faithful enough to pay up for your premiums, then your beneficiaries will be given the full amount of your death benefits.
Life insurance policies can cover you even when you die at that old age peacefully in your sleep.
- Death at the operating table.
When you die on an operating table life insurance companies still cover for your death.
Each and every kind of surgery is covered even plastic surgery.
When the policy holders are determining the value of your premiums, they check your health status in details.
If you are in good health you will be charged with low premiums.
If you have a chronic illness and you need a major surgery, then your premiums will be charged heavily if they can offer you coverage.
Death is a very unfortunate event of life.
In case of death and you had the life insurance, your beneficiaries will be at an advantage financially.
However different policy holders have different rules and exclusions governing their life insurance policies.
This is why when taking this step of getting a life insurance you should seek to understand the terms of your contract because, there are some that get coverage for some deaths while others do not.
These deaths that are above discussed are paid up after fulfilling the desired conditions by the policy holders.