What Does Life Insurance Cover? 

Life insurance is a crucial tool designed to help provide financial security to your loved ones in the event of your passing. Understanding what life insurance covers can help you make informed decisions about the type and amount of coverage you need.

When the insured person dies, their beneficiaries can apply to receive the policy’s death benefit. This lump sum payment can be used for any reason. Your agent can help determine an appropriate death benefit for your situation.

Types of Death Covered

Life insurance policies generally cover death due to the following:

• Natural causes—Death due to age-related issues or health conditions

• Accidental death—Death resulting from unforeseen accidents

• Illness—Death caused by diseases or medical conditions

In general, life insurance policies may exclude coverage if the cause of death is suicide within two years of the policy’s start date. Insurers may refuse to pay a claim if the insured person made false statements on the application or if the policy lapses due to nonpayment of premium.

Additional Coverage Options

Many life insurance policies offer additional coverage options, known as riders, which can provide extra benefits or expand the scope of coverage.

Some common riders include the following:

• Accidental death benefit—This may provide an additional payout if the policyholder dies because of an accident.

• Waiver of premium—These may waive future premiums if the policyholder becomes disabled.

• Critical illness—This rider may pay a lump sum if the policyholder is diagnosed with a specified critical illness.

• Long-term care—This addition may help cover the cost of long-term care services if the policyholder becomes unable to perform daily living activities.

Contact Us

Contact Foulcard Insurance Agency in Franklin, Louisiana, for a life insurance quote.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.