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The sum of Life Insurance cover and personal accidental cover more than Life Value

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21 Jun, 2021 by  Dipak R Gandhi


Can the sum total of my Life Insurance Cover and the Personal Accidental Insurance cover be more than my life value at the time of death - life as per my income at the time of my death.

What I mean is : will the insurer honor the Personal Accidental Claim if my Life Insurer has already honored the claim as per the cover value - which itself is equal to my life value at death.

My second question is : will my Life Insurer reject the claim of my Term Insurance if my life value at the time of death is less than the sum insured value. In other words : I could get the Term Plan of certain Sum Insured Value because I had a required income to show when I started the term plan, but my income at the time of death is less than what it was at the beginning of the Term Plan. Will the Life Insurer demand income documents after my death to verify my life value.

Thank you


Dipak R Gandhi

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Accident Insurance

1 Answer

22 Jun, 2021
Mohit Gupta

Hi Dipak,

HLV or Human Life Value is one of the parameters used by insurance companies to ensure that value of a person is more alive than dead. It is calculated every time you take an insurance product, more so in case of term loans where sum assured are much higher. Having said that, HLV keeps on changing during the lifetime as the income of insured change.

Coming back to your question, since personal accident and life insurance are 2 separate products, HVL would not be merged for such computation. Even if Personal accident rider is taken along with term plan, the computation is largely done on basis of base sum assured. If you have truthfully declared your existing life cover at the time of policy issuance, there is no reason for insurance company to decline your claim on that ground. There is also no requirement of submission of income documents of the deceased and the claim is processed purely on the basis of death and/or accident related documents as the case may be. If the insurance company believes that there is a foul play, they may initiate investigation in the claim which can be a time consuming process. But the claim can't be declined on the basis of income reduction post policy issuance.

Hope I have answered your question.

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22 Jun, 2021
Dipak Gandhi
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