Types of Death Excluded From Life Insurance Coverage

Life insurance covers deaths due to natural causes, accidents, murder (unless the beneficiary is involved) and suicide after the suicide clause period.

Life insurance exclusions often include deaths from undisclosed pre-existing conditions, certain risky activities, fraud and intentional illegal acts. These are common reasons life insurance won't pay out.

Yes, dying of old age is covered as a natural cause under life insurance policy coverage.

Life insurance does cover deaths from cancer since it falls in the natural causes category. However, if the insured had cancer prior to filling out the application and didn't report it, the insurance company has the right to review the claim and deny the payout.

Yes, deaths from heart attacks are generally covered as natural deaths under life insurance policy coverage.

Death related to cirrhosis is covered unless linked to undisclosed conditions or behaviors that violate the policy's terms.

Yes, life insurance covers accidental death, including unforeseen events like traffic accidents or falls.

An overdose can be covered unless proven intentional or undisclosed risky behaviors are involved.

Deaths by suicide are covered after the initial two-year contestability period, known as the suicide clause, unless specifically excluded thereafter.

Life insurance covers murder unless the beneficiary is proven to be involved, adhering to the Slayer Rule, which prevents payout under such circumstances.

If an insured person dies right after getting life insurance, what happens next depends on the cause of death. If the death is the result of natural causes or something not specifically excluded from the policy, then the beneficiary should receive the payout. However, the insurer has a right to contest the death benefit claim request in the first two years of the policy. If it’s found the insured committed fraud, omitted something from the application or died by a cause not covered by life insurance, then the claim may be denied.

Insurers deny life insurance claims for several reasons. These include death occurring during the contestability period, the type of death not being covered by the policy, failing to disclose information on the application, lying on the application or failing to pay premiums and allowing the policy to lapse.

If the insured does not pass away during the term life insurance period, the policy expires, and no benefit is paid out. This is one of the term life insurance exclusions — only death within the term period triggers a payout.

If the insured and primary beneficiary are killed in the same accident, the death benefit will go to contingent beneficiaries. The payout typically goes to the insured’s estate if no contingent beneficiary is named.

It depends on the type of policy. Whole and universal life insurance policies accumulate cash value, which policyholders can borrow against or withdraw. Additionally, many policies include living benefits, such as accelerated death benefits, that provide early access to funds in cases of terminal illness. These features are part of what life insurance covers beyond the standard death benefit, offering flexibility for various financial needs during the policyholder's lifetime.

Although it is possible to purchase life insurance for someone who is terminally ill, options are limited and often costly. Companies may have disqualifying conditions for life insurance. Many policies exclude pre-existing, severe illnesses, and insurers may deny coverage or offer only limited types of coverage, such as guaranteed acceptance life insurance policies that don’t require health questions but come with higher premiums.