The term insurance policy covers natural death. If you are familiar with the terms of term insurance, you might think that this is not possible with conventional insurance. Under normal circumstances, term insurance plan will cover all types of deaths caused by accidents, illnesses, or natural deaths, although they are all-natural causes of death, which may cause major financial problems to relatives and family members. In these cases, term insurance plans help families by providing the money needed to meet their life goals and needs but does not cover all possible conditions of the deaths that may fall under these headings.
The types of deaths covered by term insurance policy depend on the insurance company and policy terms, but the following types are generally eligible for term life insurance:
1. Natural death: The death of the insured person due to natural causes is included in the plan.
2. Death due to illness: If the insured person dies due to illness or disease such as kidney failure, these deaths are usually included and covered by the term plan. However, you should pay attention to – coverage for medical illness and diseases are accepted by the insurance company only if they arise after purchasing and activating the term plan.
3. Accidental death: Generally, almost all term insurance policies also cover accidental death. Therefore, if the insured person dies in a fire, a car accident, heavy machinery accident, or even due to electric shock, their family can still claim death benefits from the insurance company.
4. Death due to COVID-19: As the coronavirus pandemic sweeps the world, many potential term investors want to know whether long-term plans will include coverage for the virus. Fortunately, term plans provide coverage for COVID-19 deaths provided a person contracts the disease after purchasing the natural death insurance plan, not before.