Life insurance policy gives protection against your life. You should buy the most appropriate policy so that your insurance needs will be fulfilled in the best possible way. It is very much important to go through the policy wordings. You will not go through unpleasant surprises when you are aware of the policy terms and conditions. The insurance company should not reject your claim. Hence, you are advised to check your policy. The claim rejection can be avoided by taking the precautionary steps. The following information will help you in this direction.
Life Insurance Policy Claim Issues
While you claim on an any insurance company then the first things you normally informing the insurance company that you are suffering from loss or damaged that you believe is covered by the policy and you are requesting action.
We have mentioned about life insurance claim rejection issues that everyone should need to know.
Reasons for rejection of the claim
You should be aware of the reasons for claim rejection. If you are aware of the policy claim features and take appropriate steps in informing the insurance company and preparation of the document, the chances of rejection will be remote.
Not disclosing medical history
If you fail to disclose the medical history, you will want to pay hefty price. The insurance company will accept or reject your claim as per the information provided in the medical history column. The proposer and his or her family details should be shared significantly. Based on the information provided by the policyholder, the insurance premium will be calculated. You should share your hobbies which can affect your health as well.
Misrepresentation of information
Before buying a life insurance policy, the insured will fill the application form. The applicant should provide correct information in various fields including age, weight, health condition, occupation, income, hobbies and criminal history.
While processing the claim, the insurance company will go through the information submitted by the policyholder. If there is misrepresentation of facts, the insurance company will reject the claim.
On-time premium payment
The premium payment should be done on-time. If the policy is active, the insurance company will settle the policy without any issues. If the policy payment is delayed beyond the grace period, the policy will lapse. A lapsed policy will not offer any policy benefits and you will forego the payments as well. If you delay the payment, you will want to pay the penalty charges as well.
The nominee information should be updated so that the proceeds of the policy claim will be paid to the nominee without any difficulty. Now-a-days, the amount will be transferred online so that you can provide the bank name, and account information as well so that there will be timely payment of the claim proceeds. You can include your parent’s name as a nominee in the policy. After the marriage, you can include your spouse or children as your nominee. Nominee will be the person who depends on you financially and the policy benefits will be transferred to the nominee.
Delay in filing the insurance claim
There should not be delay in filing the insurance claim. You can inform the insurance as soon as you are involved with the risk. The policy information should be shared with family members so that they will be able to contact the insurance company and the claim process can be initiated very quickly. The insurance company should be aware of the incidents for which the company is liable for payment. If there is hospitalization of policyholder, the information should be informed to the insurance company quickly and there will not be any suspicion on your claim.
You should be aware of the exclusions that are not covered by the policy. You should understand the terminology while buying the insurance product. If there is ambiguity, the insurance company will decline your claim.
Refraining medical tests
The risk assessment will be done by the insurance company based on the information provided in the proposal form. The policy will be issues after the assessment of the risk by the underwriter. If you go for higher ‘sum assured’, you should undergo the medical tests suggested by the insurance company. If you ignore, the medical tests, the insurance claim may be rejected.
Not disclosing old insurance policies
As per the policy declaration rule, the policyholder should provide information about other life insurance policies. There are some people who will hide intentionally and some out of ignorance. You should provide information about your previous policies. The policy details should be mentioned regardless of the sum assured. If you fail to inform the company about your policy details, your claim will be rejected by the insurance company.
You must share complete information about your identity, earnings and health condition. Concealing information will make you purchase the trouble and your claim will be rejected by the insurance company. The insurance company will go through the terms and conditions and rules and regulations as set by the law. If you fail to provide accurate information, the insurance company will reject the claim.