Types of Deaths Not Covered Under Term Insurance

We all want to make sure that the future of our loved ones is secure, especially when we are not around to look after them. Hence, a sound financial investment is necessary to achieve this objective. There are several life insurance products available in the market that promise to protect your family financially in times of need.

One such life insurance product that is affordable and makes for a sound financial investment is a term insurance plan. Term insurance offers financial security to your loved ones in case of your death. A lump sum amount is paid to the beneficiaries of the policy in case of your untimetime death.

Even though term insurance is specially designed to cover your family financially in case of your death, there are certain types of deaths that the policy excludes. In this section, we will be discussing the same.

Types of Deaths Not Covered Under Term Insurance

The types of deaths not covered by term insurance plans in India are explained below -

  1. Death by Suicide

Most insurers in India do not cover death by suicide in their insurance plans. However, it is essential to check the inclusions and exclusions of the policy before buying it. For those insurers who do offer cover for death by suicide have certain norms.

In case the insured individual dies by suicide in the initial 12 months of the policy, the beneficiaries will receive 80 percent of the premium paid (for non-linked term plans). In the case of linked plans, the beneficiaries will receive 100 percent of the premium paid. But if the insured dies by suicide after the policy completes 12 months, no benefits will be provided to the beneficiaries.

So, it further highlights the need to for one to check the terms and conditions of the policy before purchasing it.

  1. Self-inflicting injuries

If the death is caused due to self-inflicting injuries or a life-threatening activity, the beneficiaries of the term insurance plan will not receive the death benefits. In other words, claims made based on such a situation are likely to be rejected by the insurer.

  1. Death due to HIV/AIDS

Most insurers in India do not cover deaths caused due to HIV/AIDS. In such a situation, the term insurance beneficiaries will not receive the death benefits if you (the policyholder) dies due to HIV/AIDS or any other sexually transmitted disease.

  1. Death due to intoxication

If the insured dies due to drug overdose or any other intoxication, the insurer will not provide the death benefit to the beneficiaries of the term insurance plan.

  1. Homicide

If the insured is murdered by one of the enlisted beneficiaries and the crime investigation reveals the same, the insurer has the liberty to reject the claims made on the term insurance plan. The payout will be put on hold until the beneficiary gets their name cleared off from the crime.

Now that you know the types of deaths not covered under the term insurance plan let us also take a look at deaths the policy usually covers.

Types of Deaths Covered Under Term Insurance

The following is the list of deaths covered under a term insurance plan in India -

  • The death of the insured due to natural causes or any health-related issues are covered under the policy.

  • For those who have purchased a term insurance plan with accidental death benefits will be able to claim additional death benefits in case of accidental demise.

  • The policy also covers death due to natural disasters such as tsunami, earthquakes, lightning, severe weather conditions, etc.

How to Claim Term Insurance on Death

Claiming on your term insurance plan is a quick and hassle-free process. Just follow the steps given below -

  1. Register your claim online with your insurer

  2. Upload the supporting documents for verification and proof

  3. The insurer will access your claim request and make a decision

  4. You can check the claim status/decision online


Before you buy term insurance in India, check the policy paperwork thoroughly for exclusions and inclusions. Having a proper understanding of the same comes in handy when making claims in the future. Also, make sure that the beneficiaries of the policy are well versed with the settlement process. That way, when the time comes to make a claim after your death, they will be able to go through the process seamlessly.

You can read more about the term insurance claim settlement process on Bajaj Markets.

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