6 Minute
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You depend on insurance policies to get you or your family through the most vulnerable times. Nothing can be as scary and depressing as your term insurance claim being denied during such times.
Often we unintentionally jeopardize our insurance claims by making errors. More so, if this is your first time getting an insurance policy. We often overlook the fine print and end up losing a considerable amount of money. To avoid such a fate here are a few common mistakes people make that might be one of the reasons for rejection of term insurance claims.
Concealing one's medical history:
It is vital, to be honest about one's medical history when applying for a term insurance policy. This includes the medical history of immediate family members – especially a history of diseases like blood pressure, cardiovascular disorders, diabetes, cancer or any other genetic conditions. Some insurance policies also require you to disclose certain habits like smoking and drinking.
It is always better to give authentic accounts of your medical history since most policies do not cover every disease and concealing a health issue can be one of the reasons for your term plan claim rejection.
Sharing inaccurate information :
Be extra careful while filling information such as your age, profession, salary, lifestyle choices, educational qualification etc. This information is crucial in deciding your premium, as well as the sum assured. Wrong or deficient records can be interpreted as insurance fraud. This may lead to the rejection of your term insurance claims.
Irregular payment of premiums:
Your term insurance provider will only settle the claims of active policies. They usually offer a grace period (usually a month in case of policies with an annual premium plan) after which the policy lapses. After that, all premiums paid beforehand are void.
Arrange automatic debit facilities, so you don't miss a payment. If you still miss a premium and the policy lapses, we suggest that you pay the required fees. Your family's security is more important in the long run.
Not filling the application, yourself:
Getting an advisor to fill the insurance application might be convenient, but the agent won't be completely aware of your and your family's details, medical history, finances etc. The best way to avoid mistakes is to fill the insurance proposal yourself. It helps you determine whether a policy is suitable for you as well.
Not renewing nominee information:
After the death of the insured person, the beneficiary or the nominee gets the benefits. So, it is vital to update the nominee's information, like their contacts and address etc. Not doing so can get be one of the term insurance claim rejection reasons.
Furthermore, be judicious while picking your nominee. If a person is married, their spouse or kids can be nominees, for a bachelor nominating their parents or other members of their family is ideal. If the nominee is under age, a guardian has to be included.
Non-disclosure of previous insurance policies:
It is necessary to reveal the particulars, such as the term insurance provider, the insured sum, and the policy number, of all your previous insurance policies when you are getting new insurance. If you fail to share those details, your term insurance claim might be rejected.
In this challenging time, having a good insurance policy to ensure the well-being of your loved ones is necessary. But, just getting insured is not enough; you have to be vigilant about maintaining those policies so that you or your loved ones do not have to suffer later. Ensure that you are well-informed and fill in the details correctly, and you give no reasons for your term insurance claim to be rejected.
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