Home |Life Insurance | In a term plan we are paying premium every month for the coverage but what if a person face death early (say after one year only of taking life insurance) in the period so he has not paid the amount of the coverage so will his family be getting the full coverage amount?

In a term plan we are paying premium every month for the coverage but what if a person face death early (say after one year only of taking life insurance) in the period so he has not paid the amount of the coverage so will his family be getting the full coverage amount?

Shailesh Kumar, Co-founder, Insurance Samadhan

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Answered on January 05,2022

Yes , claim will be payable .That is the purpose of Insurance to cover the risk of uncertain event like death.

Please note that many pays the premium to help few where the insured event take place .

So if 1000 people pay the premium and 1 die then 999 people are collecting fund to pay the claim amount .

Insurance is business of pool management where each member has common risk -death is certain but timing is uncertain .

Please note that death within first three year is called early claim and Insurance company sees it with suspicion and investigate each case to avoid a wrong entry . This investigation is done as per section 45 of Insurance Act .

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