What Happens If Your Term Insurance Claim Gets Rejected?
While going through his everyday dose of news, 33-year-old Anubhav Jagdale came across a piece that made him a little unsettled. It was about a young widow who had recently lost her husband. She was now struggling to get the term insurance claim settled, as her husband had passed away. His death was linked to excessive smoking and drinking.
Anubhav never smoked and rarely ever had a drink, but the news of the young woman running from pillar to post with her 3-year-old for a term insurance claim got him worried. He had a 50 lakh term insurance plan in place for his wife and daughter. However, he wanted to ensure that there was no way that they would be deprived of an insurance claim rejection. If you, too want to secure the future of your loved ones, make sure you understand the term insurance claim process.
Term Insurance Claim Rejected
A term insurance rejection is when the insurance company refuses to pay the nominee the death benefit after the death of the insured. This can happen for several reasons. Take a look:
1. Reason: Hiding medical history
One of the most common reasons for term insurance claim rejection is undisclosed medical history. Do not hide any illness or treatment taken in the past. Even if you are suffering from any disease, make sure to reveal the cause before buying a life insurance plan.
What you can do: Do not be tempted to avoid a pre-policy medical screening test. There might be an underlying medical condition that even you are unaware of.
2. Reason: Premium is not paid
Another reason for term insurance claim rejection is that the insured individual misses paying their premium. Remember, only an active policy will come to your family’s rescue in their time of need.
What you can do: First of all, choose a policy that fits your budget. Do not go overboard with the coverage if you cannot afford it. Also, set automatic debit payments for the premium to ensure you do not miss a payment.
3. Reason: Nominee details are not in order
Another ignorance that can lead to the claim getting rejected is when the details of the appointed nominee are missing. The nominee is the person who will receive the sum assured of the policy in case of the insured’s death. Failing to give their complete information to the insurer can create problems when a claim has to be raised.
What you can do: Along with providing your nominee’s details to the insurer, choosing the right nominee is equally important. At PayBima, our advisors are there with you every step of the way. They can guide you on how you should choose the right nominee. For example, for someone who is married, it is advised that their spouse be their nominee. People who are single can choose their parents as their nominees.
4. Reason: Not sharing details of other life insurance plans
There is no restriction on how many term plans you can have in your name. However, you need to make sure that when you buy a new term plan, you inform the new insurer about the policies that you already have.
What you can do: No matter how big or small an existing term plan is, tell your insurer about it before you sign a new contract.
Author Bio
Paybima Team
Paybima is an Indian insurance aggregator on a mission to make insurance simple for people. Paybima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. Paybima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.
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