Posted by On the evening of September 2020, 9, a 18-magnitude earthquake occurred in Los Angeles, California, and the earthquake was felt in many places such as Irvine and San Diego.When natural disasters happen frequently, as a holder of a life insurance policy or an insured who is planning to insure, you will naturally have questions:Natural disasters, such as earthquakes, wildfires, and personal accidents, are life insurance claims?
(The epicenter is located in the San Gabriel Valley, a high-density Chinese concentrated area in the Los Angeles area)
The shortest answer is,Yes, claims.
Life insurance policies cover deaths caused by natural disasters such as severe weather conditions, wildfires, earthquakes and lightning.
If an insured person is injured in a natural disaster and dies due to other reasons after a reasonable period of time, we usually regard it as a death caused by a natural disaster.
(A map of the area of the wildfire in the western United States in 2020, which has killed 31 people ©️BBC)
However, the policies of different life insurance companies have different terms.Generally speaking, life insurance products with many exclusion clauses for claims usually have certain price advantages.But from the perspective of risk management,The price factor should be the last consideration for policyholders.
We recommend that after applying for an insurance policy, take "natural disasters" as the starting point, look up the specific terms in the contract, understand our insurance policy, what conditions are not covered, and what conditions are covered.
After reviewing the policy documents, if we still have any doubts about this issue, we can contact directly by email or phoneLife insurance companyCustomer service hotline to ask for the official answer.
Under what circumstances may not be compensated?
Life insurance companies will not refuse claims for death due to "natural disasters"However, in the following situations, life insurance claims may be rejected.
According to Thomas Rockford, an independent insurance brokerage firm in New York, the following types of life insurance claims may be rejected:
- The policyholder died during the "defensible period." During this time period, the life insurance company will investigate the cause of death. If the life insurance company finds that the policyholder has submitted "incorrect" information during the application process, the life insurance company May refuse to settle the claim. (Dispute case report）
- The cause of death is in the exemption clause of the life insurance policy. (Again, this is why we need to read the specific clauses in the contract to understand our insurance policy, which are not covered, and which are covered.)
- The policyholder concealed relevant information; or
- No premium
- No designated insurance beneficiary
(>>>Recommended reading:What is the 2-year "non-contestable period" of life insurance?How does this clause help us?）
(No beneficiaries caused by Common Disaster)
Article summary
According to the introduction of the financial website TheBalance, natural disasters, such as earthquakes, wildfires, hurricanes, extreme weather, etc., have had a huge impact and impact on the economy.This level of threat even exceeds that of terrorism1.
Accidents always happen unexpectedly, and natural disasters increase the chance and risk of death for everyone.Therefore, having a life insurance can effectively reduce the financial dilemma brought to the family after our lives are impacted by this unfortunate event, and the far-reaching impact it brings. (Finish)
appendix
01. The Balance, Natural Disasters" Economic Impact , 2019
