What is Covered in Term Life Insurance?

Inclusions of Term Life Insurance

A term life insurance plan only offers a death benefit to the beneficiary in case the policyholder passes away during the policy tenure. The types of death covered under the plan include –

• Death because of natural causes or medical conditions
• Death owing to a terminal illness that was diagnosed less than 12 months before the survival period
• Death due to critical illness 

Riders of Term Life Insurance 

Riders are an additional benefit that can enhance a term life insurance plan making it more comprehensive. As a policyholder, you can pay an additional amount on the base premium to get the rider to their coverage. 

The riders offered with term insurance plans in the UAE are –

• Accidental Death Rider – If the life assured passes away due to an accident during the policy tenure, this rider benefit pays out an additional sum assured in addition to the base death benefit. This benefit can vary from provider to provider. 
• Critical Illness Rider – This popular rider offers a payout to the life assured upon critical illness diagnosis.It is important to note that critical illnesses are usually pre-defined in the term insurance policy. Some of them are –

1. Cancer
2. Heart attack
3. Coronary artery bypass surgery
4. End-stage renal disease
5. Paralysis
6. Chronic liver disease
7. Stroke
8. Kidney failure
9. Major organ transplant
10. Sclerosis
11. Parkinson’s disease

• Waiver of Premium – If the life assured meets with an accident or a disease that leads to their disability and they cannot pay future premiums, the waiver of premium rider helps.This rider waives the premium if the disability occurs while the policy is active. 
• Permanent and Partial Disability – If the life assured meets with an unfortunate accident or undergoes a sickness that leads to partial and permanent disability, the insurance provider pays the life assured for a fixed period after the accident. 

Exclusions of Term Life Insurance

Listed below are the exclusions or the conditions under which the beneficiary will not receive any benefit –

• Death after the policy matures
• Death due to an undisclosed pre-existing health condition 
• Death due to substance overdose
• Death due to sexually transmitted diseases
• Death owing to foreign invasions, warlike situations, or war
• Death because of a criminal activity as per the UAE laws
• Deaths related to military service