The Buyt Desk
How to ensure that the life insurance which you are buying for your family does not get rejected. It is disheartening to see families struggling after losing the breadwinner of the family. The term insurance that they had been counting on for years to address emergencies gets turned down by the company in the eleventh hour. The insurer rejected the claim, giving reasons hard to swallow.When this happens, we start blaming the insurance company and the entire service, but is the insurer always at fault, or are you accountable for it?
Many times insurance claim rejection happens because of the policyholder.People make mistakes while buying term insurance that lands them in such a situation. The 5 mistakes that can lead to claim rejection are as follows-
Concealment of Information – The most common mistake people make while buying a policy is that they get casual in providing relevant information to the insurer. Never do this!
Always be proactive in asking questions and providing information about your lifestyle, habits, health, etc. If you provide wrong information or if the provided information happens to be false, the insurance company has the right to reject your claim.
Non-payment of Premium – Paying the premium on time should always be on your priority list. Never postpone premium payment to the next date or month; otherwise, your policy will lapse, and a lapsed policy is unclaimable.
Insurance companies give some grace period to pay the premium, which varies from insurer to insurer, but on average, it remains between ten to fifteen days. Do not cross your premium due date.
Death Due to Excluded Clause – Excluded clauses are conditions which insurers do not entertain. If the policyholder happens to die because of any excluded clause, the insurer will not accept the claim. The best thing to do in this case is to carefully read the terms and conditions of insurance before taking it.
Non-Disclosure of Hazardous Activities – If you enjoy adventure and engage in hazardous activities, you should pick the insurance policy accordingly. However, if you have chosen the wrong insurance and happen to meet with an accident, the insurer might reject your claim.
Providing Wrong Information – If you provide false or misleading information about your health while applying for a policy, your claim might get rejected. For instance, if you have mentioned in detail that you don’t smoke, but later on, if the insurance company finds out you are a smoker, they may reject your claim.
Conclusion: Term insurance protects families in times of emergency.It is bought with the purpose to help the family as a means of income replacement. However, to avail of all its benefits, one must comply with the policy terms and conditions and provide accurate and relevant information while buying the policy.
