Term Insurance Plans in India are the simplest and easy to understand life insurance products. They are tailored to offer a financialReasons why Company can reject your term insurance claim shield to your family members in case of your untimely death. But, not always will this claim be accepted by the life insurance company. There may be instances such as provision of incorrect documentation or information at the time of insurance policy application. Therefore, if you feel your term insurance claim shouldn’t be denied and that your family shouldn’t run from pillar to post for the claim settlement, you need to be aware of the situations where your claim could be rejected.
Let’s have a look at the reasons why your insurance company can reject your term insurance claim:
Lapse of a term insurance policy denotes that it doesn’t exist anymore. In short, the policy is not eligible to make any payouts if a claim has been filed. Therefore, it is very important that you make the term insurance premium payments on time to not allow it to get lapsed. You can also make the premium payments during the grace period in case you miss out on the payments.
Generally a lot of people find it unimportant to disclose the insurance details of the policy they might have bought from another company. But, as per the IRDAI rules, the insurance company has full rights to reject a claim in case of non-disclosure of the previous policy documents.
Your insurance policy may be affected by the job you undertake. It is important that you disclose all the details related to your occupation at the time of term insurance policy application. In case you are involved in high-risk occupations such as working at a construction site, in a mine, etc. then it is your duty to inform your insurance provider. In short, your claim won’t get denied in case you have mentioned your occupational details to your insurer in advance.
Usually, people get scared to disclose their medical history or conditions to their insurance provider with the fear of the insurance application getting rejected. It would be basis your medical history and conditions, your life insurer would charge you the term insurance premium. In case you miss out to fill in the correct medical history or other relevant information, be ready to make the lives of your family members stress-full for claim settlement once you are gone.
The types of insurance plans vary for suicidal norms. If it’s a linked insurance plan, your beneficiary is eligible to receive 100% of the fund value that your policy holds even if you die due to suicide within 12 months from the beginning of the policy. But, if you have opted for non-linked insurance plans, your nominee would be eligible to receive 80% of the premium paid if you die due to suicide within 12 months from the commencement of the policy period.
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