Most of us read about Maslow’pyramid theory in school which said food, clothes, and shelter. The most basic need of any human being, in today’s world insurance, becomes 4th need to protect 1st three needs. If you are a main earning member of the family, you must have life insurance to take care of food, clothes, and shelter of your family if you have an untimely death.
Most of this fear that what if my life insurance claim gets rejected. All of us must know the fact that Life insurance companies’ job is to give claims if they are genuine. Deaths due to natural calamities, terrorist attacks or homicides are generally not covered by insurance policies. Please read the details while buying life, insurance policies in India to avoid claim rejection.
The average age of life insurance companies which are in India is 100 year plus, no company can survive in business for so long if they don’t honour the claim. They deny when there is wrong information found in the proposal. The only exception is if life insured commits suicide within one year of buying an insurance policy.
Life Insurance Claim Rejection Reasons
Below are the main reasons why claim can be rejected:
- Medical History: Insurance policy undergoes medical underwriting where companies check if the life insured is medically fit or not. So, if one does not share if there is any medical history or any lifestyle disease like blood pressure, diabetes etc, claim will be rejected.
- Disclosure of Facts: Any fact related to family medical history or any habit like smoking or drinking has to be disclosed If not claim will get rejected.
- Lapsed Policy: If one doesn’t continue paying premiums on time, the policy would lapse. The claim would not be given in such a case. However, if you have paid more than 3 premiums then the policy will go in a reduced paid up and you may be eligible for reduced sum assured.
Also Read: Claim Process for Life Insurance Policy
We can avoid life insurance claim rejection by just making sure that all the information given in the policy form is correct so read before you sign the proposal form. Also, you must share the information on your existing insurance policies in the proposal form whenever you buy a new insurance policy.
Correct information in the proposal form is a guarantee of your family’s financial protection GOD forbid if something happens to the life insured.
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