What type of death is not covered in term insurance
A term insurance policy ensures financial security for loved ones in case of a breadwinner's untimely passing. Not only does this type of death insurance offer a financial fail-safe, but it is a guaranteed way to shield your family long after you are gone.
However, before going for a term insurance plan, knowing what is covered and what is not is important to make a well-informed decision. Many wonder which death is not covered in term insurance; here are the details.
Traditional term life insurance plans promise a defined sum to your loved ones if something untoward happens to you while the policy is in force. The benefit paid to the nominee/heir is called a death benefit. To answer the basic question ‘What type of death is not covered in term insurance,' some unfortunate instances are not covered in life insurance policies.
Death due to homicide
The nominee is responsible
Let us assume you as a policyholder are no more, and the nominee is responsible for your demise. The life insurer will reject the claim if there is information suggesting that the nominee has taken the policyholder's life.
In such unique instances, the insurance payout will not be done until the charges are cleared, or the nominee is acquitted in a court of law.
The policyholder was involved in a criminal activity
Involvement in criminal activity is illegal and dangerous and is usually associated with an extremely sad ending to one's life. Life insurance won't pay out if the policyholder dies in criminal activity.
The policyholder’s death is caused by a terrorist attack
Policyholder's death due to terrorism may exclude term insurance payout. This is because many insurers simply don't offer coverage for such incidents. Accidental death cover in term insurance may be present, but not when a life is lost in a terrorist attack. So, it will be prudent to check with the chosen insurance company about this coverage.
Man-made Calamities
There are instances when loss of life occurs due to events triggered by humans. For example, demise occurring due to unnatural disasters such as invasion, war, foreign hostilities, an act of violence by a foreign enemy, mutiny, civil war, rebellion, insurrection, revolution, civil commotion, riots, strikes, etc. fall into this category.
Insurance claim proceeds in such cases may not be given. This is because some life insurers will reject the claim if the policyholder passes away because of these artificial or man-made calamities. It is better to read the insurance plan policy to understand what is covered and what isn’t.
Death due to intoxication
There is a reason why people are asked not to be involved with intoxicating substances. Policyholders who die due to drunk driving or drug overdose may have their claims rejected. Most often than not, the life insurance company will not pay the benefit in such situations. During the policy issuance stage, insurance firms as a policy do not issue term insurance to heavy drinkers or substance/drug users. To avoid rejection of the claim, one should disclose the history of alcohol consumption or substance/drug use in the proposal form.
Death due to hazardous activities
You might be aware of adventure sports such as bungee jumping and paragliding. Some insurers may classify these activities as hazardous. Skydiving and parachuting can lead to fatal accidents, threatening the policyholder’s life. Hence, such incidents are not covered under term insurance.
One of the simplest ways to check this is to look where the activity provider asks you to sign a waiver form. If you engage in such activities, you should disclose information to the life insurer while purchasing the policy to avoid the rejection of any valid claim eventually.

Death due to pre-existing health conditions
Imagine the policyholder dying due to a pre-existing medical condition (PED). If they had this PED before purchasing the insurance policy and did not disclose it, the insurance claim may be rejected. Similarly, any loss of life of the policyholder due to self-inflicted injuries or sexually transmitted diseases such as AIDS/HIV is not covered.
Note that any sudden health/medical cause of passing will be covered, but if there is any information to suggest that it was pre-existing, then the insurer may not honour it. An unfortunate demise related to the heart is covered by insurance, but if the condition is pre-existing, then the scenario might change.
Loss of life due to suicide
Self-harm leading to the dissolution of life is not covered within a defined period. Assume that the insured person commits suicide within the first 12 months of the term policy period, and then term insurance does not cover the cessation of life. Life insurers offer coverage for suicidal loss of life from the second year onwards. This is something one should check in the policy document.
Death due to an accident
Accidental demise is a portion that needs understanding. Term insurance plans cover death due to accidents, making accidental death a built-in feature.
In some plans, there may be additional accidental loss of life benefit riders that double the sum assured. But do understand that if the cause of the accident is due to a self-inflicted reason or some dangerous activity or criminal activity, such a claim may get rejected outright.
Death due to childbirth
The life insurer will not give the nominee the promised sum if the policyholder dies due to pregnancy issues or childbirth. Such a type of loss does not fall under the scope of life insurance as per current norms. So, insurance proceeds post the cessation of life won't be given.
Claiming for More than Two Policies
Loss of any life is a very unfortunate event. If you buy and hold more than one life insurance policy, your beneficiary can rightfully claim from all of them. Multiple policies offer a level of protection that a single plan may be unable to.
Frequently Asked Questions
Which type of death is covered in a term plan?
Term insurance plans cover natural demises and all health-related expiration of human life. Also, term plans cover accidental demises if a rider has been opted for.
Does Term Insurance Cover Normal Death
Yes, term insurance plans cover all normal demises, including those caused by illness and due to natural reasons.
Does accidental death insurance cover natural death?
No, loss of life from a natural cause or illness does not fall under the scope of accidental departure of the policyholder.
Does Term Insurance cover suicide?
Yes, term insurance plans cover suicide after 12 months.