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Does Life Insurance Cover Personal Injury?

Life insurance provides your loved ones with the means to pay for end-of-life expenses, including funeral services, and potential unpaid debt. Typically, these funds are only available after someone dies. But if you’ve had a near-death accident or injury, can you receive coverage on a personal injury through your life insurance policy? 

This post will explore the specifics that life insurance policies that provide coverage for, and expenses that are not covered by these funds. It will also help you understand the details of life insurance as it relates to personal injuries.

What Does Life Insurance Cover?

If a life insurance policyholder dies, their insurance provides their designated beneficiary with finances that can cover present debts and future expenses. This can help family members who previously relied on the departed’s income. These payouts may be the difference between families struggling to keep up with bill payments or continuing to live their lives with dignity despite losing their loved ones. If you are the beneficiary, it is vital to understand what’s covered.


There are plenty of situations where someone’s loved one would require money from their insured’s policy not to disrupt their present lives. These could include the following:

  • Money to continue paying rent or mortgage payments
  • Finances to pay for long-term care
  • Funds to pay for everyday expenses such as groceries

The amount of money a beneficiary receives can be based on multiple factors, such as the duration since the policy was opened, the insured’s occupation, activities, lifestyle, and overall health.

Expenses Covered by Life Insurance

Each insurance company tends to differ on what is available should the insured individual pass away. If you need clarification about the parameters of your current policy, review it with your provider to understand the details. Specifics included in this coverage might be:

  • Funding for a child or young adult’s education
  • End-of-life expenses
  • Childcare expenses such as daycare, clothing, and school supplies

However, certain terms may exist within the contractual agreement that prevents beneficiaries from receiving coverage. This could occur even if your loved one dies after years of making payments.

What Does Life Insurance Not Cover?

For the most part, life insurance does not cover personal injuries. If a wrongful death happens because of the injury, with evidence that the other party is responsible, some policies will uphold their terms and allow for full payment. In addition, you could pursue a life insurance payout while putting forth a personal injury case.

Life insurance policies have limitations and stipulations that might prevent the insured’s beneficiary from getting coverage for potential expenses. These can usually be covered by other categories of life insurance policies that are more niche. But, there are also instances where life insurance might not be covered due to the actions of the insured person. 


Each life insurance company and policy will have different rules to adhere to. It’s possible to have a circumstance covered by one brand and yet another life insurance provider not protect the same event. Reading the terms and use of life insurance policies before you enter a contract agreement is vital, as one violation can cause your beneficiaries to be denied a payout. Some scenarios to consider include the following:

  • Life insurance may not provide coverage for critical illnesses
  • A life insurance policy may not cover long-term disability expenses
  • If the insured person passes away due to intentionally partaking in reckless behaviour
  • The individual dies while committing a crime

Expenses Not Covered By Life Insurance

Life insurance policies likely will not cover expenses incurred due to a personal injury. If the injury ultimately leads to the policyholder’s passing, the beneficiaries can receive an insurance payout in most cases. 

Nearly all insurance companies will stipulate the expenses that are and aren’t covered within their contract’s terms. Ensure you familiarize yourself with costs that aren’t covered should you be interested in switching to a better insurance plan. This is especially critical if you’re looking to get coverage for a person who and insurer might be wary to cover, such as someone with a history of ailments, addiction, or mental health problems.

Contacting a Personal Injury Lawyer

If you feel that your insurance claim was unfairly denied, reach out to Bergeron Clifford’s team of legal professionals who can provide sound advice regarding your unique situation. In addition, you may want to start gathering available evidence to support your claim. This evidence can help our team better understand the circumstances and build a case that ensure you’ll receive what is owed to you in regards to fair compensation. 

If you or a loved one has life insurance coverage and are living with a personal injury resulting from an accident, we recommend you get in touch with us as soon as possible. We’re here to help.

Contact Bergeron | Clifford LLP

Let us help you if you have been injured anywhere in Eastern Ontario. Contact us at 866-384-5886 or fill out our online form. We can meet at any of our office locations, including Kingston, Ottawa, Whitby, Carleton Place, Perth or wherever is most convenient for you.

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