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What Your Life Insurance Doesn’t Cover

A life insurance policy provides a lump amount to your beneficiaries if you pass away from accidents, natural causes, and most diseases. However, there are some events under which benefits aren’t payable. Some of the events that your life insurance may not cover include:

Mortgage Insurance
Mortgage insurance ensures your mortgage is paid off if you die. The lump amount paid out by a life insurance policy could be used to pay off your mortgage if you purchase the mortgage insurance and life insurance policy together. But buying the mortgage insurance separately allows you to remove this expense from your life policy.

Critical illness and Disability
The benefits of a life insurance policy are only payable on the policyholder’s death. To get covered, you must purchase critical illness and disability insurance separately.

Depending on your insurer, some life insurance policies paid a lump sum to your beneficiary in the case of a suicide, while others don’t cover suicide.

Other exclusions
Other exclusions include reckless endangerment, pre-existing medical conditions, or if you die during a crime. Your beneficiary may not get a lump sum in situations like this.

Contact your insurance company if you’re worried about what’s covered under your policy.