Unusual Circumstances: Terrorism / Natural Disaster

Usually, a life insurance policy will cover your death even if it is the result of terrorism, atmospheric contamination or a natural disaster. This general rule applies to term, whole-of-life and endowment insurance. However, if you have life insurance as a group member, for example life insurance from your employer which provides cover for all their employees in the event of terminal illness or death, there may be restrictions.

One restriction might be that the insurance does not cover the employees in the event of a terrorist attack on their place of work. This is to protect the insurance company in the event of a terrorist attack which kills hundreds of employees and would otherwise cost the insurance provider hundreds of thousands of pounds. It is important to read the terms and conditions of your life insurance policy to check whether you are covered for all eventualities.