You always invest in the best term insurance policy to live a life free from worries and provide financial coverage to you and your family. But, what if your claim gets rejected due to any silly or intentional mistake committed by you? To avoid any mistake, you should be wary of the material information while filling in the application form.
As per IRDA’s Claim Settlement Report 2016-17 published in 2018, a few insurance companies rejected approximately 10% of the insurance claims. And, it was due to the mistakes committed by the insured, not the insurer.
Apart from covering other aspects, a term insurance plan can also cover the benefits of a critical illness plan if chosen with the required add-ons. You can receive more comprehensive coverage for health-related uncertainties this way.
Keep in mind the following things while filling in the application form to minimize the risk of term insurance rejection:
- Provide Correct Personal Details
While filling in the application form, make sure you fill in the correct information. Most importantly, all the details in the form should be filled in by you and nobody else. Nobody knows you better than you.
You cannot merely brief any insurance agent about your medical history and expect him to fill in all the information by trusting him blindly. Few minute details don’t seem to be of much importance to the agent, but they might cost heavy on your term insurance plan, which might even lead to claim rejection later.
2. Never Hide Pre-Existing Diseases
You should never commit the mistake of hiding pre-existing diseases from the insurer. Concealing any bit of information might lead to the rejection of your claim. Whenever you claim any term insurance policy, it will be traced back to your application and the information you provided.
If any connection is found between the current ailment and pre-existing diseases, regarding which no disclosure has been made to the insurer, your claim might be rejected. Therefore, while choosing the best term policy in India, you should be careful while providing the details.
3. Check Term Plan Exclusions
While choosing the best term insurance policy in India, you should look up all terms and conditions before signing up for one. Every insurance provider has different specifications and benefits to offer. You should necessarily know in-advance that what all does an insurance plan excludes.
Otherwise, you might claim for a mishap, which might not be valid for availing any claim. It’ll lead to the rejection of that claim. For instance, after buying the best term life insurance with maximum benefits, somebody might commit suicide, which is not a qualifying condition for getting a claim.
4. Understand Your Policy Term Thoroughly
Everyone has different goals when he/she applies for term life insurance. To make the maximum use of it and opting for the best term insurance policy, you should analyze your goals.
After you’re done with the analysis, you should choose a term insurance plan in accordance with your goals. Otherwise, the insurance plan might not fall in line as expected. Again, your request for the claim might get rejected if your claim’s condition is not a part of the respective policy.
5. Update The Nominee Information
The information of the nominee should be updated if anything changes. Like, before your marriage, you can name your parents as the nominee, and post your wedding, you can name your spouse as the nominee.
If the information is not updated or there’s any confusion, this might create problems in disbursing the claim amount. Additional documents might also be required for the same.
6. Inform The Insurer At The Earliest
As soon as anything happens, the insurer should be informed about it at the earliest. If you’re unable to do it right at that moment, you should handover it to any of your responsible relatives or friend.
But, you should keep your insurer posted about the events taking place so that the claim settlement process starts on time. Also, if you’re opting for the best insurance plan in India, you can get your claims settled in time.
7. Pay Your Premiums On Time
You should ensure that you pay the premiums on time; otherwise, your insurance policy might get lapsed. Non-payment of the premium till the last date or post the grace period will lead to the lapsing of your policy. Your nominee will be eligible for getting insurance claims only on active policies. Therefore, you should regularly make your premium payments without any fail.
You must keep track of everything and keep all the information up to the mark to benefit from the best term insurance policy. And, just by making honest disclosures, keeping information up to date, and paying your premium on time, you can minimize the risk of term insurance claim rejection.
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