Death is a topic that most people would rather avoid discussing. However, it's an inevitable part of life, making it essential to plan for. One way to do so is by purchasing life insurance. However, not everyone knows exactly what types of death are covered by a policy.

In this article, we'll go over the different types of death that are typically covered by life insurance, so you'll have a better idea of what kind of protection your policy can provide for your dependents in the event of your passing.

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Types of death covered by life insurance

Life insurance policies typically cover the following types of death:

●      Unnatural causes, such as accidents or murder

●      Natural causes, including sickness and disease

●      Accidental death

●      Suicide (depending on the policy)

Types of death NOT covered by life insurance

One of the most common reasons insurers refuse a payout is if an individual deliberately lies or withholds information on their application. Therefore, it's important to be honest when applying for life insurance, disclosing any pre-existing conditions in the process.

Lots of insurers, however, have 90%+ successful claim rates for life insurance, so as long as you are open and honest during your application, a payout shouldn’t be an issue. 

You may be interested in - Myth busting - Does life insurance actually pay out?

Does life insurance cover suicide?

Life insurance policies have a suicide clause - although it depends on the type of policy and the insurer. Suicide may be covered if it occurs within a certain amount of time after the purchase (for example, one year).

How do life insurance payouts work?

A payout, also known as death benefits, is paid out to the family and/or loved ones when the policyholder passes away during their policy. Depending on the policy type, the payout can be a lump sum or a series of payments made over time.

Life insurance payouts depend on several factors. For example, term life insurance only pays out so long as you pass away within the agreed policy term. Whereas whole life insurance can cover you for the rest of your life before paying out.

Please note: The insurance products offered by Cavendish Online have no cash-in value at any time. If you stop paying your premiums your cover will stop, your policy will end, and you will receive no benefit. If you have not claimed before the end of your chosen policy term, the policy will end, and no benefit will be paid.

If you are facing financial difficulty, please contact your insurer before cancelling your policy or letting it lapse. They may have options available that means you don't have to lose the plan.

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Which type of policy should I buy?

There are a few different types of life insurance policies available. The type of policy you should buy will depend on your personal needs and circumstances.

For example, if you need cover for a set period of time or if you want the lowest possible costs, then term cover may be a good option for you.

On the other hand, if you want permanent cover then whole life insurance may be the better choice. You can also opt for a joint life policy if you and your partner are looking for cover together.

See: What is the best life insurance policy for me?

Do I need to undergo a medical exam to get life insurance?

In general, insurers may require medical exams for policies with larger cover amounts. This is because the insurer wants to assess your risk profile before granting you cover.

The exam will involve basic tests such as checking your height, weight, blood pressure, and cholesterol levels via a nurse screening. Your nurse may also ask questions about your lifestyle habits (such as drinking or smoking) and family medical history.

The results of the exam can be used to determine whether or not you qualify and what rate you can expect to receive.

If you have any pre-existing medical conditions, guaranteed life insurance may be a good choice. This type of cover provides guaranteed acceptance without the need for a medical exam. However, it is usually more expensive than traditional life insurance policies, and the sum you can insure may be more limited.

How long does it take to receive a payout?

The time it takes for a family/beneficiary to receive the death benefit depends on several factors. Generally speaking, it can take anywhere from a few days to a month for the beneficiary to receive the payment.

The time frame can depend on things, like the size of the claim, how quickly and accurately paperwork is completed, and if any additional verification is needed.

If you are still unsure about your policy and what types of death it covers, you can contact our life insurance advisers. They can help provide more information on what is covered, as well as answer any additional questions you may have.

Speak to the experts...

Give our advisers a call today.

Our team of friendly and professional advisers are on hand to help with any questions you may have regarding Life Insurance, Critical Illness Insurance and Income Protection.

The advisers can also make recommendations tailored to your current situation and will research the market on your behalf, ensuring you secure the cover you need and supporting you every step of the way. 

01392 43 61 93(Monday to Friday, 9am - 5.30pm)

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