When buying term insurance, one of the primary goals is to secure the future of your loved ones by offering them financial stability in your absence. With life plans being such an important aspect of your financial planning, it becomes essential to understand what they cover.
Let’s take a look at whether term insurance plans offer coverage for natural death.
Term Insurance and Coverage for Natural Death
What is natural death? The term “natural death” usually refers to a demise not caused by force or accident. Natural death may refer to demise which occurs due to illness, failure of organs, and age-related factors.
So, does term insurance offer coverage for natural death? Yes, natural death is usually covered under term insurance. It may come with certain considerations. Hence, it is best to check your policy document to understand the details.
Types of Deaths Covered by Term Insurance
When buying a policy, it is important to know what types of deaths are covered. Commonly, term insurance plans offer coverage for the following types of deaths:
It includes death due to health conditions such as heart attacks, strokes, or other medical issues. It also covers death due to old age if it occurs within the policy term.
Many term insurance policies also provide coverage for accidental deaths.
It includes deaths caused by various diseases, provided they are not excluded under the policy terms.
However, it is important to note that some policies may have exclusions or waiting periods for specific causes of death. For instance, deaths due to pre-existing conditions might not be covered immediately and could have a waiting period of one to two years. Furthermore, coverage for death due to suicide may also be conditional.
In conclusion, term insurance does cover natural death, making it a reliable option for ensuring the financial security of your family. It is important to review the policy terms carefully, understand any waiting periods or exclusions, and consult with an insurance professional, if necessary.
Besides the death benefit, term insurance tax benefits are also a common factor that may make these plans a suitable option for many. Ideally, one should compare term plan options and use tools such as term insurance calculators to make an informed choice.
Disclaimer:
The aforesaid article presents the view of an independent writer who is an expert on financial and insurance matters. IndiaFirst Life Insurance Co. Ltd. doesn’t influence or support views of the writer of the article in any way. The article is informative in nature and IndiaFirst Life and/ or the writer of the article shall not be responsible for any direct/ indirect loss or liability or medical complications incurred by the reader for taking any decisions based on the contents and information given in article. Please consult your financial advisor/ insurance advisor/ health advisor before making any decision.
Under no circumstances, including but not limited to negligence, shall IndiaFirst Life or its directors or employees be liable for any special or consequential damages that are alleged to have resulted from the use and/or inability to use this site or information contained within, even if IndiaFirst Life and/or its employees or directors have been notified of the possibilities of potential damages or losses.
Tax benefits are as per the prevailing Income Tax Laws including the Income Tax Act, 1961 and are subject to change from time to time.
IndiaFirst Life Insurance Company Limited, IRDAI Regn No.143, CIN: U66010MH2008PLC183679, Address: 12th & 13th floor, North Tower, Building 4, Nesco IT Park, Nesco Centre, Western Express Highway, Goregaon (East), Mumbai – 400 063. Toll free No – 18002098700. Email id: customer.first@indiafirstlife.com, Website: www.indiafirstlife.com. Fax No.: +912268570600. IndiaFirst Life Insurance Company Limited is only the name of the Life Insurance Company and does not in any way indicate the quality of the contract, its future prospects, or returns. For more details on risk factors and terms and conditions, please read the sales brochure carefully before concluding the sale. Trade logo displayed above belongs to our promoter M/s Bank of Baroda and is used by IndiaFirst Life Insurance Co. Ltd under License.
Customers 
Distributor 
Employee 
