Does Life Insurance Cover Natural Death?
Is natural death covered by life insurance? Find out how standard policies address illness, disease, and old age for beneficiaries.
Life insurance provides a financial safeguard, offering a death benefit to designated beneficiaries upon the policyholder’s passing. It helps families manage expenses after the loss of a loved one. A common question is whether these policies cover death from natural causes, which is a primary consideration for many seeking such protection.
Understanding Natural Death in Life Insurance
Natural death, within the context of life insurance, refers to a death resulting from internal causes such as illness, disease, or the aging process. This includes conditions like heart disease, cancer, stroke, or complications from old age. It is distinct from accidental death, which involves external, violent, and unforeseen events, such as a car accident or a fall.
The vast majority of standard life insurance policies, including term life, whole life, and universal life, are structured to provide coverage for natural death. This is the fundamental purpose of these policies: to offer a payout when the insured dies due to health-related issues or old age. While some policies might offer additional riders for accidental death, the core death benefit almost always encompasses natural causes, ensuring comprehensive protection for beneficiaries.
Policy Provisions and Natural Death Coverage
While natural death is generally covered, certain policy provisions can influence the payout process. The contestability period is a standard clause, typically lasting one to two years from the policy’s issue date. During this timeframe, the insurer has the right to investigate the accuracy of information provided on the application if a natural death occurs. If material misrepresentations are discovered, such as undisclosed health conditions, the insurer might deny the claim or adjust the benefit.
After the contestability period expires, claims for natural death are usually processed more directly, provided there was no fraud involved in obtaining the policy. Another provision that can impact natural death claims is a waiting period, which is more common in certain types of policies, such as guaranteed issue life insurance. These periods often range from two to three years. If the insured dies from natural causes within this specified waiting period, the payout may be limited to a return of premiums paid, often with a small amount of interest, rather than the full death benefit.
Submitting a Claim for Natural Death
Initiating a claim for a natural death requires gathering specific documentation to present to the insurance company. Beneficiaries will need:
A certified copy of the death certificate, which provides official confirmation of the death and its cause.
The policy number.
The claimant’s personal identification.
Information verifying the claimant’s status as a beneficiary.
Once the necessary documents are collected, the next step involves contacting the insurance company to begin the claims process. This can be done by calling the insurer’s customer service, visiting their website to access online claim forms, or reaching out to the agent who sold the policy. After submitting the completed claim forms and all required documentation, the insurer will review the submission. The initial review process typically takes one to two weeks, with the full claim processing and payout often occurring within 30 to 60 days after approval.