Health

Things to Keep in Mind to Minimise Risk of Term Insurance Claim Rejection

Term insurance can provide financial assistance to the policyholder’s family in case of an unfortunate event. However, a small mistake from the nominee can lead to claim rejection. Therefore, it is crucial to keep in mind a few things before filing a claim to avoid rejection.

In this article, we will explain things customers should do to make sure their claim doesn’t get rejected.

A term insurance policy offers life cover to the policyholder’s family. In case the policyholder passes away during the term of the plan, then the insurer can provide a sum assured to the beneficiaries. This sum assured can help in meeting future expenses. However, in case the customer makes a mistake, the insurance provider can reject the claim.

Thus, it is important to avoid mistakes while filing a claim in order to receive the benefits. Here are some things that customers should keep in mind to minimise the risk of term insurance claim rejection-

  • Don’t Hide Information

Any information that isn’t provided to the insurance company will be considered ‘concealment of information’. When a claim is filed, the insurer will trace and track back everything in the application form and check for all the information. If a policyholder hadn’t informed the insurer about a pre-existing disease that might have caused death, then the insurer will not provide any benefit to the nominees. Thus, it is important not to hide any information.

  • Update the Nominee Information

The nominee is the person who receives the benefits of the policy. In case the person is single, then he/she should nominate his/her parents as nominees. Post-wedding, a person can name his/her spouse as the nominee. By naming a nominee, the policyholder can ensure his/her dependant receives the benefits of the plan.

  • File Insurance Claim Immediately

Quickly informing the insurance company is crucial for not getting a claim rejected. It is critical to keep the insurer informed about the situation. Informing the insurer immediately can make the claim process easy. In some situations, the insurance company might also consider delays in informing the insurance company as fraud.

  • Medical Examinations

In order to understand the policyholder’s medical condition, the insurance companies might take their medical examinations. These examinations can help the insurer understand how the policyholder’s health condition might become in the future.

  • Applicants Must Fill the Insurance Application Form Themselves

It is important that the applicants must fill the application form themselves. Ensure that no details are hidden from the insurer. Any mistake might lead to the claim getting rejected in the future.

  • Understand the Policy Document

It is crucial to understand the policy document. The person must understand the exceptions list. In case the policyholder files a claim because of a reason mentioned in the exceptions list, then the insurance claim might get rejected. Furthermore, when a person is looking for a term plan online, he/she can instantly read the policy document as it can be sent via email.

By avoiding mistakes while filing a claim, the nominees can get the benefits of term insurance. Keep the aforementioned points in mind in order to not get the claim rejected.

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