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How can you avoid life insurance claim rejection?

The final stage of a life insurance policy is claim settlement wherein the policy nominee receives the sum assured as a death benefit or maturity benefit depending on the type of insurance policy. However, often it is seen that the life insurance claim gets rejected due to various factors such as providing wrong information while submitting the policy application form at the initial stage or if the nominee details are incorrect. And this could be a huge set back at the time when you need the sum assured amount the most.

How can you avoid life insurance claim rejection? 1


But you can avoid your life insurance claim getting by following some simple steps such as filling up the form correctly, linking your Aadhaar with your policy, providing the correct information about yourself and your health condition amongst others. Let’s understand those factors in detail.

Disclosing right information about your health

Life insurance policy is a contract between the insured and insurer, based on trust and transparency. Therefore, it is essential and necessary for you as a policyholder to furnish all information about yourself, your lifestyle habits, health condition correctly to your insurer. Disclosing false information or hiding information with respect to your health and habits, regardless of how little it may appear to be, can lead to different complications and deferral during your life insurance claim settlement.

Ideally, it would be best if you always opted for a medical test while applying for a life insurance policy to know the present status of your health and to make the insurer aware on the same. False or non-disclosure of previous health conditions is one of the significant explanations behind life insurance providers to deny claims.

Fill the application form yourself and carefully.

Don’t just sign on the specked lines and leave the responsibility of filling the application form to another person. While it’s helpful, it can prompt minor blunders and oversights that could have an unfavorable impact during your life insurance claim settlement. 

It’s a decent practice to fill the structure yourself to avoid mistakes. Representatives from the insurance company s are consistently there to help you. All things considered, you are the best individual to know details regarding yourself and your health. Take as much time as is needed while filling up the form but do it carefully and double-check before submitting it.

Update your policy details regularly

You need to refresh your details mentioned in the policy as and when required. For example, if you have shifted to a new home or have changed your contact number, then you should inform your policy insurer as early as possible.

Likewise, you should update details of your beneficiary in case you need to change your preference. In case of your claim settlement process, if your beneficiary does not have the required documents as evidence to prove himself or herself as the policy beneficiary, then the life insurance claim might get rejected.

You need to ensure that all your policy documents are kept in a proper way, and your dependents are well aware of them. Remember, original policy documents are required during a life insurance claim; therefore, it is essential to keep them safe.

Pay premiums regularly 

Insurance providers only settle life insurance claims for active insurance policies. There are a baffling number of individuals who don’t comprehend that deferring premium payments can result in policy lapse. And if your policy gets lapsed then all your policy benefits and premiums paid will become useless. You will neither get the premiums back not there is any legal validity that your beneficiary will get the sum assured. So, you must pay policy premiums on time.

Overall, it is necessary to keep yourself educated and side by the side of all advancements with your insurance provider. Be aware of the details and guidelines of your policy document. Stay always updated about the conditions under which you or your beneficiary will qualify for the claim. And lastly do consider life insurance as a serious financial product and not just a tax-saving tool, which should be used correctly. If you are looking for more information regarding a life insurance claimthen visit today and stay stress-free forever.

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