Key Takeaways
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A Term insurance provides financial protection to your family in case of any unfortunate eventuality. As a beneficiary, your wife, parents or children can receive a lump-sum death benefit in case of demise of the insured during the policy tenure. Even though term plans are among the most affordable and rewarding insurance options one can have, it is better to have complete knowledge about the kind of deaths that are covered under a policy, and also those that are not covered. It is always beneficial to be aware of the terms and conditions of the term insurance policy, to ensure there are no unpleasant surprises waiting for your family members or dependents, when they are already in stress. Term plans are best suitable for planning short to medium term goals. Let’s see what kinds of deaths are typically not covered in term insurance plans in India:
The above mentioned are certain lifestyle influenced exclusions in a term insurance policy. It is important that you mention about your smoking and drinking habits, if you happen to have them, at the time of application of the policy. Following which an insurance company will typically assess the risk of death due to these habits and may charge an additional premium for the cover. However, hiding the information can lead to problems at the time of claim settlement, causing trouble to your family. And in case the information is revealed after application, the company may cancel your policy.
Also Read - Term Plan Meaning
Apart from these previously mentioned pointers, there are some other conditions that are mostly not cover by a term policy:
In cases where certain hazardous life conditions are predictable by the policy holder, insurance companies may offer riders and additional coverage options. It is advised you flourish all information at the time of buying of the policy. Also, if there is a change in lifestyle after allotment of the life insurance policy, the policyholder should ideally share the information with the insurance company to ensure efficient coverage and easy claim settlement, when the time comes.
Any natural death or death due to health-related issues will be covered by insurance plans in India. With critical illness covers, in case of death of the policyholder due to a critical illness or medical complication, the beneficiary will receive the sum assured as the death benefit. Most term plans also provide coverage in case of death of the insured due to an accident or disability caused by an accident. Moreover, term policies also offer the option of choosing from a variety of additional benefits that promise additional sum assured for specific uses like child education.
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For any term life insurance plan, in case an unfortunate event takes place within the first two years of the policy term, the case is considered under Section 45 of the Insurance Act, 1938. It states that the claim will firstly be investigated for fraud, including improper disclosure of information or even misrepresentation. However, after 2 years no claim can be denied on the basis of these grounds. Therefore, the importance of being honest and presenting the correct information with your insurance company cannot be emphasized enough.
The iSelect Smart360 Term Plan by Canara HSBC Life Insurance is ideal for those who have big plans in life and need an insurance cover as flexible as their needs. The plan offers you flexibility to Increase you’re your cover aligned with changing life stages and protection needs at key life milestones, in addition to inbuilt benefits for Accidental Death, Child Support, and Accidental Total and Permanent Disability.
Denial rates have increased over the last five years, rising by more than 20%, leading to prolonged financial stress for families.
Filing a claim should be a hassle-free process. Here is the step-by-step guide one can follow:
While term insurance provides financial security, policyholders must understand what is excluded from coverage. Being aware of potential claim rejection reasons can help avoid unpleasant surprises for beneficiaries. Always ensure transparency while purchasing the policy and pay premiums on time to keep the coverage intact. By doing so, one can safeguard their family's future without unnecessary complications.
Disclaimer - This article is issued in the general public interest and meant for general information purposes only. The views expressed in this blog are solely those of the writer and do not necessarily reflect the official policy or position of Canara HSBC Life Insurance Company Limited or any affiliated entity. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the blog or the information, products, services, or related graphics contained in the blog for any purpose. Any reliance you place on such information is therefore strictly at your own risk. You should consult with a qualified professional regarding your specific circumstances before taking any action based on the content provided herein.
Canara HSBC Life Insurance offers online term insurance plans to secure your family financially in your absence.
