Why Life Insurance Claim gets Rejected & How to Avoid That?

Why life insurance claim gets rejected: Did your insurance company reject a claim? Then the next question in your mind might be, why was my insurance claim denied and what do I do if my insurance company denied my claim? Let’s discuss in detail why life insurance claim gets rejected and what you can do to avoid that.

In today’s uncertain life, a life insurance policy can secure your family’s future financial health in case of an early death. And this fact is known to everyone. Today many companies sell insurance policies and even many people avail multiple life insurance policies in his or her name.

Taking more than 1 life insurance policy (term insurance, endowment policy, ULIP etc) is not a problem. But the problem arises when you don’t share about your existing policies that you have done with other companies.

In this sector, companies tend to scrutiny everything about you so that they can avoid paying the benefit to you in case of your death. And in their terms and condition they used to mention many clauses which buyer should read properly and then only sign the agreement. Otherwise in your absence your family have to face many surprises.

Why life insurance claim gets rejected?

From life insurance point of view, generally there are 3 categories of people.

1) Few people want to play smart and don’t disclose the old policies thinking that company may not track them. But they are the biggest fool on this earth as insurance companies are looking for such chances to stop the payment.

2) Few people don’t know that this is a compulsory clause and they don’t bother to read the terms and condition. They just want to do the policy to save tax at the end of the year, but one must know that, this is for his or her family’s future only.

3) Few people are really aware of the fact that why insurance policy claims get rejected and they want to take all possible extra precautions to make his or her family’s future secure.

So now you can put yourself in any of these 3 categories. If are in category 3 then you are really thinking about your family and know how to play smart with the insurance company. But for the other category people, your damn care attitude will only make your family suffer in case of sudden death.

Must Check: What to do when you are a victim of mis-selling of insurance policy?
Must Check: 9 Reasons To Buy Life Insurance Now

How to avoid life insurance claim rejection?

  • Scrutinize the policy document carefully and provide all the necessary information.
  • Don’t hide any information as your claim rejection will highly depend upon the details you provide.
  • Accept the medical tests and examinations sponsored by the company and disclose about the pre-existing ailments, if any.
  • Update the nominee information with your spouse details, in case you have bought the policy before marriage.
  • Always pay your premiums on time to keep your policy active.

So don’t be in a hurry while filling up any insurance related forms and be transparent, declare all necessary information to avoid life insurance claim rejection.

Please feel free to share your experience about this topic if any. Also don’t forget to share this article with your friends and help them to avoid these life insurance claim rejection reasons.

Recommended For You