Cover for Natural Disasters

Dear Mr. Tan
Does a life insurance policy cover death by earthquake, such as happened in Sichuan? I am told that "acts of God" are excluded. Is earthquake considered an "act of God"?

REPLY
A life insurance policy, e.g. whole life, endowment or term insurance policy, covers death by earthquake and other natural disasters. It actually covers death from all causes, except for suicide during the first year.

Natural disasters are usually excluded for property insurance, i.e. insuring your home, factory, shop or motor vehicle. These natural disasters are specifically excluded in the policy, e.g. earthquake, windstorm, volcanic eruptions, etc. You can buy specific cover for these events by paying an additional premium.

I am not sure if these natural disasters are excluded from personal accident insurances. You have to enquire about it. It is better to pay a slightly higher premium and have these events included in the cover.

The terms "act of God" or "natural disaster" are not specifically used in the policy. The specific events are named in the Exclusion clause.