Understanding Life Insurance Coverage for Deaths Due to War or Terror Attacks
The recent Pahalgam attack has highlighted the growing threat to life due to rising global uncertainties. When purchasing a life insurance policy, it’s essential to read the exclusions to ensure your family receives the death cover benefits without complications. Historically, most life insurance policies excluded deaths related to war and terror attacks. However, many insurers have started including these events in their coverage.
Expert Insights on Life Insurance Coverage
Insurance experts were consulted to clarify whether term life insurance policies cover deaths due to war or terror attacks. Kapil Mehta, co-founder of SecureNow, stated, “Most life insurance policies provide the death benefit in case of war and terror acts.” Varun Agarwal, Head of Term Insurance at Policybazaar, concurred, saying, “Most term life insurance policies in India cover death resulting from war or terrorist acts.” However, he advised checking the specific policy wording or consulting the insurer for clarity.
Anil Kumar Singh, Chief Actuarial Officer at Aditya Birla Sun Life Insurance, explained that their term life insurance policies include coverage for deaths resulting from war or acts of terrorism, provided the policyholder is a victim and not a perpetrator. Shilpa Arora, co-founder of Insurance Samadhan, noted that while there are generally no exclusions for deaths during war or terrorism, policyholders must declare occupational risks, including working in combat roles.
Common Exclusions in Life Insurance Policies
Experts highlighted common exclusions in life insurance policies. Kapil Mehta mentioned that suicide in the first policy year is generally the only allowed exclusion. Varun Agarwal added that other exclusions may include death due to participation in hazardous activities, criminal acts, or substance abuse. Shilpa Arora emphasized reviewing the policy document for specific exclusions, as they can vary between providers.
Key Takeaways
- Most term life insurance policies in India cover deaths due to war or terrorist acts.
- Policyholders must understand the difference between being a victim and a perpetrator.
- Common exclusions include suicide in the first policy year, hazardous activities, and criminal acts.
- It’s crucial to read and understand the policy exclusions before purchasing.
In conclusion, while many life insurance policies now cover deaths due to war and terror attacks, it’s vital to carefully review the policy terms and conditions to ensure adequate coverage.
