Does Health Insurance Cover Death?

Life is unpredictable and so is death. A lot of people lose their lives untimely in an unfortunate situation leaving their families alone to fend for themselves. Given the uncertainty around death, a lot of people wonder if health insurance plans provide coverage for death. Let’s read on to find the answer to this question.

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      Does Health Insurance in India Cover Death?

      Unfortunately, no.

      Health insurance plans in India do not provide coverage for the death of the insured. This means no death benefit will be provided to the insured’s family in case of his/her death. In fact, the health insurance policy will cease to exist unless there are other family members covered.

      Wondering why?

      Well! Health insurance plans are designed to cover the health needs of a person. It provides coverage for any medical/hospitalization/surgical needs of a person. It will cover the medical expenses of the insured in case of a medical emergency, planned hospitalization, OPD consultations and diagnostic services based on the plan chosen.

      As a result, no coverage benefit is provided to the insured upon his/her death under a health insurance policy. Whether it is individual health insurance, family floater health insurance, senior citizen health insurance or critical illness health insurance, no death benefit will be provided to the insured’s family.

      Accidental Death Cover Under Personal Accident Insurance Plans

      Although health insurance plans in India do not cover the death of the insured, the situation is not the same in the case of a personal accident insurance plan. Unlike a health insurance policy, personal accident insurance provides coverage for the accidental death of the insured.

      A personal accident insurance policy is designed to provide coverage for accidental death or disability. It covers the insured in case he/she dies due to an unfortunate accident and provides financial assistance to the insured’s family.

      It is important to note that personal accident insurance plans do not cover natural deaths. In case a claim is raised for the natural death of the insured, the insurance company has the right to reject it.

      How Much Personal Accident Insurance Coverage Should You Buy?

      As per insurance experts, a person should opt for personal accident insurance coverage of 100 times his/her monthly income. For example, if you earn Rs 50,000 per month, then you should opt for a personal accident insurance cover of Rs 50,00,000. Doing so can ensure that your family’s financial needs, such as loan repayment, children’s education, children’s marriage, etc., are taken care of even in your absence.

      Factors Affecting Personal Accident Insurance Premiums

      The premium of a personal accident insurance policy depends on multiple factors. Take a look at some of the major factors below:

      • Occupation – In case you have a risky job, then you are a bigger liability for the insurance company. As a result, you will be charged a higher premium to buy a personal accident policy. For example, mine workers, mountaineers, etc.
      • Exposure to Risk – People who are exposed to risk on a regular basis are a bigger liability for the insurance company than others. Thus, their personal accident insurance premium will be more expensive. For example, people living in landslide-prone areas.
      • Coverage Amount – Just like any health insurance policy, the coverage amount or the sum insured dictates the premium of the personal accident insurance policy. The higher is the coverage amount, the higher will be the premium charged.
      • Age of the Insured – The age of the person who will be covered under the accident insurance policy also influences the premium amount. The more is the age of the person, the more will be the premium amount.

      Things to Keep in Mind While Buying a Personal Accident Insurance Plan

      While buying a personal accident insurance policy, you must keep the following things in mind:

      • Plan Type– In case you want a personal accident insurance cover only for yourself, you must opt for an individual plan. But if you want coverage for your entire family, you must opt for a floater cover.
      • Scope of Coverage– Check the coverage offered by the accident insurance plan before buying. Purchase a plan that will adequately cover the financial needs of your family in your absence.
      • Global Coverage– A lot of personal accident insurance plans offer global coverage and provide compensation in case you meet with an accident abroad. If you often travel abroad, you must opt for a plan that comes with global coverage.
      • Claim Settlement Ratio– Before you buy a personal accident insurance policy, do check the claim settlement ratio (CSR) of the insurance company. If the insurer enjoys a good CSR, then the insurer will settle the claim on time, thereby, ensuring a hassle-free process for your family.
      • Exclusions– While buying the policy, make sure to go through the exclusions and check what is not covered. In case the policy excludes an essential cover for your family, you can look for another policy.
      • Premium– You must crosscheck the premium of the policy you intend to buy before buying. Go ahead with buying the plan only if you can afford it. You can use a personal accident insurance premium calculator to find out the premium of a policy before buying it.

      In a Nutshell

      Death can come for anyone anytime. Unfortunately, no health insurance plans provide coverage for death. However, you can opt for a personal accident insurance policy to ensure coverage against accidental death. Just make sure to keep the above-mentioned points in mind before you buy personal accident insurance to protect the future of your family.

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