MANAGEMENT

Detailed explanation-1: -In general, life insurance policies cover deaths from natural causes and accidents. If you lie on your application, your insurer could refuse to pay out to your beneficiaries when you die. Life insurance policies cover suicide, but only if a certain amount of time has passed since buying the policy.

Detailed explanation-2: -A: Term plans cover all health-related and natural deaths. If a medical condition or critical illness claims the life of the policyholder, the beneficiary receives the sum assured as per the policy terms. Additionally, term plans cover accidental deaths, including fatalities caused by vehicular accidents, drowning etc.

Detailed explanation-3: -If you pass away, the life insurance company can pay out a death benefit to the person or persons you named as beneficiaries of the policy. Some life insurance policies can offer both death and living benefits. A living benefit rider allows you to tap into your policy’s death benefit while you’re still alive.

Detailed explanation-4: -Insurance companies define accidental death as an event that strictly occurs as a result of an accident. Deaths from car crashes, slips, choking, drowning, machinery, and any other situations that can’t be controlled are deemed accidental.