Understanding Life Insurance Coverage for Deaths Due to War or Terror Attacks
When purchasing a life insurance policy, it’s essential to read the exclusions to ensure that your family and loved ones can easily receive death cover benefits. Recent events like the Pahalgam attack have highlighted the growing threats to life due to rising global uncertainties.
Historically, most life insurance policies excluded deaths related to war and terror attacks from their coverage. However, this has changed over time. Many insurers now include death due to war and terrorist attacks in their life insurance policies’ 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, states, “In case of life insurance policies, most of them provide the death benefit in case of war and terror acts.” Varun Agarwal, Head of Term Insurance at Policybazaar, concurs, noting that most term life insurance policies in India do cover death resulting from war or terrorist acts, as these events are generally not excluded.
Anil Kumar Singh, Chief Actuarial Officer at Aditya Birla Sun Life Insurance, explains 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 and chief operating officer at Insurance Samadhan, mentions that major insurance companies have removed exclusions for deaths during war or terrorism, but policyholders must declare occupational risks.
Key Takeaways for Policyholders
- Most term life insurance policies in India cover deaths due to war or terrorist acts.
- Policyholders must understand the difference between being a victim versus a perpetrator.
- Occupational risks, including working in combat roles, must be declared.
- Non-disclosure of occupational risks can lead to claim denial within the first 36 months.
Common Exclusions in Life Insurance Policies
While many life insurance policies cover deaths due to war and terror attacks, there are other common exclusions. These include:
- Suicide within the first policy year
- Death due to participation in hazardous activities
- Criminal acts
- Substance abuse
It’s crucial for policyholders to carefully read the exclusions list before purchasing a life insurance policy. Different insurers may have varying exclusions based on their underwriting policies.
Conclusion
In conclusion, most life insurance policies today cover deaths resulting from war and terrorist attacks. However, the specific terms can vary between insurers and policies. Policyholders must thoroughly review their policy documents to understand what is covered and what is not.
