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Death is inevitable. We never know when our last day on this planet will be!
While death cannot be avoided or delayed, you can surely help your loved ones deal with the situation with some degree of financial ease. This is where an insurance plan becomes very important. It helps your family cope with your loss without facing the financial burden of your absence.
However, when it comes to death coverage, most people wonder if it is included in their cashless health insurance plan. If you are also confused about the same, we have got you covered.
Keep reading to find out if demise is included in a health insurance policy.
Does Health Insurance Cover Death of the Policyholder?
Unfortunately, the short answer to this question is, No. The majority of online health insurance plans do not cover the demise of the policyholders.
As the name suggests, a health insurance plan takes care of the healthcare and medical requirements of the policyholder. It includes covering the cost of medical treatments, health assistance, routine check-ups, and related services.
Therefore, no demise coverage is offered to the policyholders regardless of the type of medical insurance plans they might have purchased. In most cases, the health insurance plans lapse after the demise of the policyholder.
What Type of Insurance Covers Death?
While most health insurance schemes do not cover the death of the insured, some policies and add-ons can be purchased for the demise coverage. One such insurance scheme is personal accident insurance policies.
A personal accident insurance cover is specially designed to cover the accidental demise of the policyholders. These schemes provide financial assistance to the family of the insured if he dies due to an unforeseen accident.
However, note that personal accident insurance policies do not offer coverage for natural deaths. So, you can not raise a claim for the natural death of the insured.
Things to Consider Before Choosing Insurance That Covers Death
If you are planning to purchase an insurance policy that covers the demise of the insured person, make sure to consider the following factors:
- Type of Plan
As mentioned above, you should consider buying a personal accident cover if you want to cover demise. Again, there are various categories of personal accident insurance schemes. For instance, you can either buy an individual plan for yourself or insure your whole family by investing in a family floater plan.
- Claims Settlement Ratio
The claims settlement ratio is perhaps the most important factor to consider when selecting an insurance provider. It is the ratio of successful claims to the total number of claims filed. It indicates how good a company is at settling the claims raised by the policyholders. Leading insurers like Tata AIG have a high claim settlement ratio.
- Type of Coverage
This refers to the scope of coverage offered by an insurance plan. As you may know, different plans offer different coverage at different terms and conditions.
Therefore, before making any final decision, take your time to compare several plans and make sure that the plan you have selected covers your family’s financial needs to a great extent.
- Inclusions and Exclusions
As mentioned above, every insurance scheme comes with its own terms and conditions. So, it is important to understand them before making an investment. Make sure it covers all the situations that you are looking for. More importantly, check out the conditions that are excluded in your plan.
- Premium Value
Last but not least, check the monthly premium value and ensure that it does not exceed your financial budget. The best way to buy a suitable health insurance policy is to compare multiple policies and select the one that meets your requirements and budget.
Final Words
As we have discussed, the answer to the question- “Does health insurance cover death?” is No.
The medical insurance plans offer benefits related to the health of the policyholders. They offer coverage for the treatment and diagnosis of various health conditions.
However, if you want a death cover, then you can purchase a personal accident cover from a reputed insurer. It will help your family or dependents to get reimbursed after your unfortunate demise.
We hope this helps you in choosing the best insurance scheme for yourself.
