Affordable Life Insurance Protection for Your Family
If you are considering the purchase of a life insurance policy, or you already have one, you may be wondering if life insurance does pay out a death benefit should you pass away from natural causes.
The answer is "Yes".
Life insurance is meant to provide a lump sum to your beneficiaries in the event of your death from natural causes, accidents and most diseases.
The natural death or caused by health-related issues is covered by term life insurance plans. In case the policyholder dies due to any type of critical illness or medical condition, the beneficiary of the policy will get the sum assured as the death benefit.
Life Insurance Explained
Life insurance is a contract between the owner of the insurance policy (insurance policy holder) and a life insurance company, where the life insurer promises to pay a designated beneficiary a sum of money (death benefit) in exchange for a premium paid to the insurance carrier, upon the death of an insured person.
Depending on the life insurance contract, other events such as terminal illness or critical illness can also trigger payment to the insured person by the insurance company.
The policy holder typically pays a premium, either regularly or as one lump sum.
Other expenses, such as funeral expenses, can also be included in the benefits paid out on a life insurance policy.
Exclusions to Life Insurance
Here are Some Common Exclusions to Life Insurance:
Not all life insurance policies have the same exclusions.
Other Types of Life Insurance Exclusions:
Each life insurance carrier has their own approach to how they assess a risk for life insurance and how they manage that risk by applying specific exclusions to a life insurance policy.
Some insurers will apply an exclusion to your policy to exclude death resulting from a specific type of risk the insurer does not wish to insure.
For example, if you are a professional race car driver, the insurance company may exclude death resulting from any professional racing activities.
NOTE: If you have questions about what is or is not covered as a cause of death for your life insurance coverage, make sure you call your life insurance agent and/or insurance company and request their response in writing. Keep the information in your file with your life insurance policy.
Yes, life insurance does pay out the death benefit if you die of natural causes.
Life insurance covers death resulting from natural causes, old age, most diseases and accidental death. However, review the exclusions section of your life insurance policy to verify what is and is not a covered cause of death.
Life Insurance Quotes
Top Pick – JRC Insurance Group
JRC Insurance Group helps you shop, compare and save on life insurance. Regardless of your age or health background, we'll shop our 40+ insurance companies and find you affordable life insurance you need to protect your family and fit your budget. Compare the best life insurance rates for savings up to 73%. Get Your FREE Quote.
Highly Recommended – Mutual of Omaha
Mutual of Omaha offers guaranteed acceptance whole life insurance for people age 45 to 85. Choose $2,000 up to $25,000 of coverage. Rates start as low as $8.84 per month. There’s no medical exam and no health questions. You cannot be turned down. You can get a quote and apply online now. START HERE to get a FREE Quote.