What's Hot

    IMF projects Indian economy to grow at 6.1% in 2023

    July 25, 2023

    Data | In Telangana, districts near capital have flourished, while those in periphery lag behind

    July 25, 2023

    Explained | Can the new data panel improve India’s statistics?

    July 23, 2023
    Facebook Twitter Instagram
    Facebook Twitter Instagram
    Invest PolicyInvest Policy
    Subscribe
    • Banking
    • Economy
    • Finance
    • Insurance
      • LIC
    • Investment
    • Market
    • Money
    • MF
    • More
      • Scheme
      • Property
    Invest PolicyInvest Policy
    Home Why is your term insurance claim rejected?
    Insurance

    Why is your term insurance claim rejected?

    InvestPolicyBy InvestPolicyNovember 2, 2019Updated:February 27, 2021No Comments4 Mins Read
    Facebook Twitter LinkedIn Telegram Pinterest Tumblr Reddit WhatsApp Email
    term insurance rejected
    Share
    Facebook Twitter LinkedIn Pinterest Email

    Term insurance is considered as one of the best life insurance plans. The scheme provides financial assistance to the nominee on the death of the insured during the term of the policy, enabling the family to live with financial stability in future. But if the insurance claim of the nominee is rejected, then what is the benefit of taking your policy. Also, because of not getting the money, you can understand the trouble they will face in future. Claims are generally not dismissed. Some mistakes and negligence of the policyholder cause the claim to be dismissed. So through this article we are going to tell you why your claim is rejected, so that you can avoid this situation.

    Why your term insurance claim gets rejected?

    There are several reasons for term insurance claims to be dismissed. Whose information is given below –

    Giving or hiding false information – Not giving complete information about yourself while taking the policy is the main reason for rejection of the claim in most cases. When purchasing a term insurance policy, the applicant should disclose their lifestyle habits, smoking habits, age, profession, medical condition, pre-existing illness and all other important facts. It may be that your premium is increased due to the disclosure of facts, but this claim is better than the denial.

    If the insurance company feels that you have not been informed of all the facts, then the insurance company verifies this. If any information is found hidden in the company’s investigation, the company rejects your claim. In order to be aware, responsible and responsible to you, you should fill all the necessary details about yourself properly to avoid the claim being rejected in the policy form. Do not give any false information in the form nor hide any information.

    Policy lapses – If you do not renew the policy on time, it lapse, ie it is not valid, it is closed. You cannot claim once the policy lapse. The main reason for policy lapses is non-payment of premium on due dates. If you are unable to pay the premium on the due date for some reason, insurance companies also provide a grace period. A grace period of 15 days is available from the due date. If you are unable to pay the premium even during this period, the policy lapse. Claims are settled at the commencement of the policy as per the rules of insurance companies. Therefore, pay the premium of the policy on time.

    If the nominee is not mentioned or his details are not updated – When purchasing a policy, most youth usually nominate their parents in the policy. If the nominee dies due to some reason and you do not nominate anyone else, then the claim may be rejected. Because in the absence of a nominee, the company is unable to decide to whom the sum insured is given. Therefore, the insurance holder is advised to keep updating the policy and mention the nominee if circumstances change.

    On not having medical test – The applicant is asked to undergo a medical test before the insurance company purchases the plan. With this, the insurance company gets to know your health and based on this, the premium and other conditions are decided. If the applicant already has a disease or is intoxicated, then in this case a higher premium is charged. Sometimes the applicant does not conduct medical tests to avoid higher premiums, although some insurance companies offer policies without medical tests till a certain age, but it is good to get the test done. It is always beneficial to opt for a medical test. This will make you aware of your health status and the insurance company will get all the information about you, which will also reduce the chances of rejection of the claim. The insurance company bears the cost of the medical test.

    Claims are rejected even in these situations

    There are some conditions and exceptions to insurance plans. Insurance companies do not provide cover for these exceptions. Some exceptions are given below. In these cases, death is not covered.

    • Insurance companies do not provide cover for death caused by injury to the insured, death due to vaginal diseases or natural disasters etc. The claim is dismissed in this standing.
    • Deaths from war, terrorist attacks or participation in adventure sports are also excluded from cover. There is no cover even in this situation.
    • If the insured is killed and if the nominee is legally found guilty, the claim is also dismissed.
    Share. Facebook Twitter Pinterest LinkedIn Tumblr Telegram Email
    Previous ArticleWhy do you need a special health plan for diabetes?
    Next Article Your guide to term insurance
    InvestPolicy

      Related Posts

      How to get the claim for the insurance of the missing person?

      July 15, 2023

      What is the preparation for surrogacy insurance, what will be covered?

      June 27, 2023

      Have you bought this cheap insurance?

      June 19, 2023
      Add A Comment

      Leave A Reply Cancel Reply

      Top Posts

      Surcharge and cess on income tax: know how much surcharge and cess government is taking

      October 22, 2019

      What to do if you have two PPF accounts?

      December 4, 2019

      Parliament proceedings | No one is denying price rise, constant efforts on to control it: Nirmala Sitharaman

      August 2, 2022
      Advertisement

      Our main motto is to help our customers in making personal finance decisions easy and convenient as per their comfort. We are committed to provide accurate and unbiased information at your doorstep and keep it transparent among our customers.

      We're social. Connect with us:

      Facebook Twitter YouTube LinkedIn
      Top Insights

      IMF projects Indian economy to grow at 6.1% in 2023

      July 25, 2023

      Data | In Telangana, districts near capital have flourished, while those in periphery lag behind

      July 25, 2023

      Explained | Can the new data panel improve India’s statistics?

      July 23, 2023
      Must Read

      Search ROR-IB (meebhoomi.ap.gov.in) AP Land Records

      January 28, 2021

      LIC Kanyadan Policy 2021 | Registration Form, Eligibility and Benefits (LIC Kanyadan)

      February 6, 2021

      What are liquid assets? Why liquid assets are important for business?

      February 6, 2020
      © 2023 Invest Policy.
      • About Us
      • Contact Us
      • Advertise
      • Privacy Policy

      Type above and press Enter to search. Press Esc to cancel.