There could be several reasons for your insurance claim being turned down by the insurance company. This is something you should look to avoid since it defeats the very reason for buying insurance, i.e. safeguarding your family’s financial future in case of your unfortunate demise. Let’s know about the five most common reasons why your Life Insurance claim might be turned down by insurance companies.
5 Possible Reasons for Life Insurance Claim Rejection:
- The application has inaccurate or false information: Many people conceal vital details while filling out the form or get it done casually by their agents. This may lead to incorrect details being submitted or information that has been concealed. The right weight, age, height, occupation and other details should be provided. Most people avoid mentioning drinking and smoking along with pre-existing ailments in order to avoid paying a higher premium. They also refrain from providing details of insurance policies with other companies while filling up the form for a new policy. Sometimes this is unintentional and agents often fill out wrong information. Many people cite higher income in order to be eligible for a higher sum assured.
- Not paying premiums in a timely manner: The claim is rejected in case premiums have not been paid by even the grace period and the policy has lapsed. Sometimes people forget to pay premiums or change mobile numbers due to which they do not get any reminder messages or don’t check mails. A grace period of 30 days is usually given by insurance companies.
- Deaths not covered by the insurance policy: There is a list of exclusions for every life insurance policy. Suicide is not covered prior to the completion of a single policy period in many cases and sometimes accidental death resulting from consumption of alcohol, drugs or other narcotics. War or other risky activities are not covered at times or even in cases where someone passes away due to pre-existing ailments which have waiting periods.
- No nominee appointed or updated: Most people buy life insurance early on and appoint their parents as nominees. Yet, they fail to update their spouses or children as nominees. In some cases, people even forget to appoint nominees later on.
- Death in the contestability duration: In case of death right after purchasing the policy, the company may have a reason for suspicion. There is a contestability period of 1-2 years in most cases. If death takes place in this period, the claim may be rejected and the company will investigate whether the customer provided proper details while applying along with the cause of death.
In case your rightful claim has been turned down you can register your complaint with us https://www.insurancesamadhan.com/register
Our experts from the insurance industry will represent you with the insurance companies and will help you to find adequate redressal for your grievances. At Insurance Samadhan, we understand that that insurance is bought for the protection of the family but sometimes the claim gets rejected due to wrong representation or technical Jargons. We can understand your claim and help you file your case again with the Insurance Company.