What Does Life Insurance Cover? 
Life insurance covers death by any reason -LRB- except suicide in the first two years -RRB- . That is whether death occurs by accident , illness , or `` old age '' . There may be some exclusions as death due to an act of war , or death that occurs during the act of committing a felony . Life Insurance covers a person -LRB- called the Insured -RRB- , and when the Insured dies , it pays the face amount of the life insurance to the Beneficiary . 