Our health is one of the most important aspects of our lives. However, sometimes tragic events can knock on your door without any intimation. Therefore, one must always be ready with a Health Insurance plan or critical illness insurance in order to safeguard your family and finances.
Although one can never be actually ready for such a misfortunate loss, it is always wise to purchase a health insurance plan to overcome such hurdles without financial stress. In this article, we are going to understand in detail what happens with health insurance after the death of a policyholder.
Vital Aspects of Health Insurance Plans Online That Need A Review
Knowing your health insurance policy before any misfortune strikes is equally vital. This ensures the seamless transition of support to your loved ones in the aftermath of life’s inevitable uncertainties.
Therefore, reevaluating the terms and conditions of a health insurance plan and the death benefit provision is essential. It will help you understand the coverage your family will get in the event of your demise. For instance, in the case of individual medical insurance, the policy will conclude upon your death, and the nominee will get the death insurance benefit.
But if there is no stated nominee, the settlement process may have legal intricacies. Therefore, designating a nominee when obtaining individual health policies for each family member is essential.
Types of Policies and What Happens to Health Insurance After Death
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Individual health insurance policy
As said above, an individual health insurance policy provides coverage to a single person.
What is the death benefit?
The policy will become invalid on the death of the insured.
The nominee will receive the death benefit, i.e., the sum of insured money as per stated coverage. But if there is no stated nominee, the settlement process may undergo legal complexities.
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Family Floater Health Insurance Plan
A Family Floater Health Insurance Plan covers all members of the family under a single plan.
What is the death benefit?
In the tragic event of the primary insured member’, a Family Floater Health Insurance online Policy continues to provide coverage to the remaining insured members.
If the person liable for paying the premiums passes away, other members must inform the insurance company about the death so the insurer will sanction the current policy and provide the updated policy details.
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Group health insurance policy
This type of policy covers a group of employees offered by an employer to employees, and the employer determines the policy coverage and its benefits.
What is the death benefit?
In the unfortunate event of the employee’s death, the policy terminates, and dependents do not receive coverage unless explicitly outlined in the policy. If the policy includes a death benefit clause, compensation is granted to the next of kin. Alternatively, if there are surviving dependents, the policy can be updated to include them in its coverage.
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Critical Illness Policy
In the case of such an insurance policy, the insured must survive a specific period upon diagnosis to avail of the benefits.
What is the death benefit?
Typically, critical insurance payout is done as a lump sum amount upon diagnosis of any cover critical illness after a certain period. Once the critical illness insurance payout is done, the policy comes to an end. If the policyholder (insured) dies within this period (where payout cannot be made), the policy becomes null and void.
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Senior Citizen Health Insurance
This health insurance plan shares resemblances with an Individual Health Insurance Policy. However, it mainly caters to individuals who are 60 years of age or older.
What is Death benefit?
In case of the insured’s death, the policy will come to an end with no benefit.
Conclusion
Health insurance policies can vary, and the features available may depend on the type of policy, regulations, and insurance company offering you service.
Therefore, it is crucial to review the specific terms and conditions of the health insurance policy and contact the insurance company directly to understand the implications of the policyholder’s death.
Frequently Asked Questions
- What is an insurance policy supported after the death of the holder called?
After the death of the policyholder, the support provided by an insurance policy is typically referred to as the death benefit or life insurance payout.
- What happens if the policyholder dies before maturity?
Health insurance policies typically do not have a maturity date like life insurance policies do. Instead, health insurance provides coverage for medical expenses as long as the policy is in force and the premiums are paid.
