July 31, 2020
Does term life insurance always pay out the policy when the insured dies?
Life insurance is for one thing — you want to know that your family will be taken care of if something happens to you. With that in mind, it is extremely important to realize that life insurance, while it usually will pay out, comes with a list of exclusions.
Let’s dive in and learn about some common ones!
The point of life insurance is to help provide for your family if something unexpected happens to you. However, if you put your life in danger in certain situations, the company has the right to deny coverage.
These situations are called exclusions. You’re covered...except for if this particular thing happens to you - and pandemics are not one of them. Check out some common exclusions in the table below.
In some cases, instead of putting an exclusion, companies will add a surcharge to your premium. For example, if you travel to “high-risk” areas, you can still get coverage, you’ll just pay a little more for it.
There has unsurprisingly been a surge in life insurance applications since the pandemic began. At this time there are no coronavirus-related exclusions. Illnesses are typically covered by life insurance, even pandemic ones.
Don’t have pandemic life insurance in Canada yet? It’s now easier than ever to apply and get coverage online to help stay safe during these troubling times.
For further information to check out more of our articles to learn the answers to your burning questions about COVID-19 life insurance and term life insurance in general!