What is covered and not covered in Term Insurance?

Term insurance offers relief to family members in case of the demise of a family member. If term insurance is taken along with appropriate riders, then it can yield a higher sum assured which could even fulfil the financial needs of the dependent members.

There are a few cases in which Term insurance gets rejected due to many conditions. So, it always must check if you are covered under the policy or not, to ensure hassle-free claim settlement.

The listing below are cases where Term Insurance is covered:

  • Natural Death or death caused by health-related issues:

If insured death is due to critical diseases or health conditions like heart attack, cancer, etc. then the beneficiary will receive the sum assured.

  • Accidental death:

Accidental death benefits are provided by term insurance plans. However, it comes with an additional rider in some cases. There are certain cases where the accidental death benefit is not offered, e.g., an accident caused due to the influence of alcohol, dangerous activities like skydiving, an accident caused by illegal activities.

  • NRI’s:

NRI’s can even purchase term insurance. They need to submit the form by visiting the country or for some policies, and it is also available online.

  • Smokers and Drinkers:

Smokers and Drinkers are covered under Term Insurance provided they are not involved in any illegal activities. Also, their death should not be a result of the influence of drinking and causing an accident.

  • All type of expenses:

With additional riders on top of the existing plan, term insurance covers almost all types of costs in the form of sum assured as a death benefit.

  • Claiming more than one policy:

If the insured already has one term insurance, then he/she has to submit the details of present term life insurance while purchasing a new policy. Proposal form should have complete information about this. Death certificate needs to be sent to an insurance company to avail the claim. Only after proper verification, the claim is settled.

The listing below are cases where Term Insurance is not covered:

  • Death by Suicide:

As per new clause of 2014, death caused due to suicide won’t be covered for atleast one year. Some insurance companies, in some plans, it is extended upto 2 years.

  • Self-inflicted injuries:

Death caused by harming our own body through knife or some harmful objects is not covered under Term Insurance.


Death caused because of sexually transmitted diseases like HIV/AIDS is also not covered under Term Insurance.

  • Intoxication:

Death, which is caused by an overdose of alcohol or any intoxicating substances, is also not covered under Term Insurance.

  • Natural Calamity:

Natural calamities like earthquake, tsunamis, etc. is not covered. But if the insured has an additional rider for Natural disasters, then it could be considered.

  • Homicide or Murder:

If the beneficiary is found guilty of murdering the insured or any other person, then such cases are not covered.

  • Involved in illegal activity, as per state laws:

If the insured is involved in some unlawful activity which is as per state law, then that claim won’t be settled.

  • Death due to pregnancy or childbirth:

If death is caused due to complications in pregnancy or childbirth, then such cases are not covered by insurance companies.

  • Death because of participation in illegal activities:

If insured is found guilty of involvement in some illicit activities, then in such cases claims are not provided.

  • Accidental death caused by alcohol:

Term Insurance companies do not consider excessive use of alcohol, leading to accidents.

Reading terms and conditions correctly before purchasing any Term Insurance is vital to avoid rejection in claims in future.

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