How to prevent life insurance claim from getting rejected?

How to prevent life insurance claim from getting rejected?


A minor mistake from your end can lead to the rejection of your life insurance claim and you would not only lose the sum assured and the benefits, but also the premiums you have paid. So read this article to understand how you can prevent your life insurance claim from getting rejected.


1. Concealing information

Even if you forget to inform the insurance company about the minor health ailment you have, chances are high that the company can reject your claim in the future. Concealing any facts about your pre-existing diseases, smoking and drinking habits or anything that is linked to being the cause of your hospitalization is investigated and if you fail to disclose any important information about your health, then your nominee will not be given any benefits and the sum assured they are liable to receive at the time of your death. It is important to know that your life insurance premium is decided on the basis of health and other lifestyle habits. So rightfully always disclose every bit of information that the company asks for. 


2. Always pay your premiums on time

If you do not pay your life insurance premium on time, then chances are that the policy will lapse and you would not be given any sum assured and the benefits at the time of the claim. The premiums will not be given back to you and all your hard earned money would be of no use to you and your family even. In some cases, late premium payment charges are also levied and you will not be given any additional benefits. Ensure that you have a clear and timely premium payment history to prevent your claim from getting rejected.


3. Update nominee information

On your death or disability, your nominee is the person who is entitled to receive the sum assured and the additional benefits, if any from your life insurer. Depending on your choice, always keep a nominee and change it if your nominee passes away before you. Remember, you can only nominate the person whose livelihood is dependent on your income.


4. Delay in filing the claim

Though you may not be able to call the insurance company and file a claim in case of any medical emergency, but it is always a wise idea to ask your friend or nominee to call the insurance company and initiate the claim process. Your insurer would be the one who would be liable to bear the finances later. Hence, it is important that you keep them updated with all the events that require their assistance. The sooner you intimate, the easier the claim process would be. Any delay in filing the claim could be considered as a case of potential fraud by the company and your claim can be rejected.


5. Accept the medical examinations

Life insurance companies require you to go through a series of medical tests that help them understand your medical condition. These tests are conducted for free and taking them would help you detect the disease at an early stage and treat them accordingly. Always accept the medical examination to ensure your claim is not rejected.


6. Fill out the life insurance application form yourself

Do not trust anyone when it comes to filling out the life insurance application form on your behalf. This form stands as the testament of the sum assured you require and also all the information you disclose to the company. Even a minor mistake in your date of birth, address, lifestyle habits could be a good reason for the insurer to reject your claim. Insurance agents are always in hurry to meet their sales targets and can end up disclosing all the right information about your health and coverage needs. So always fill out all the forms yourself.


7. Thoroughly read the policy documents

One of the primary reasons as to why you are given the policy documents is to read and carefully understand the extent of coverage you will be provided by the insurance company. Know the exclusions of the life insurance policy and understand the grounds on which the company would not provide you with any coverage. You get a free-look up period of 30 days to read through the policy under which you can opt to discontinue the policy if you are not fine with the terms and conditions of the policy. Read through the documents carefully to ensure you are happy with the coverage provided by the insurer. 


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