INSURANCE SETTLEMENT

 INSURANCE SETTLEMENT

Claim denied? You may be at fault too

Without holding crucial details can lead to rejections

The LITMUS TEST of any insurance policy is when it comes to getting your claim. With term insurance, it is important to be even more careful about ensuring the claim doesn’t get rejected. It is pertinent to know the reasons behind rejection of term insurance claims to avoid financial challenges for the surviving family members.

 

Overlooking the policy declaration rule

Customers often miss the important policy declaration rule that requires them to disclose any current policies to the insurer. Not disclosing pre-existing policies can lead to claim rejection.

Description of your work

While people from all professions and backgrounds can apply for term insurance, a few professions involve high-risk activities. Failing to disclose such vital information can cause claim rejection if the insurer believes it was intentionally withheld.

Unrevealed habits

The choice of lifestyle and habits of an individual play an important role in deciding the risk factor in term insurance. Habits such as smoking can directly affect the premium charged by an insurer. Moreover, adventure sports enthusiasts should also divulge their interests and activity details to the insurer beforehand.

Delegating paperwork

Buying a term plan involves two stages. The first stage includes researching and comparing to find the best option. The second stage demands reading the fine print and understanding the terms and conditions of your policy. Customers usually skip finer details and hand over the paperwork to agents or third parties. However, assigning such critical tasks can lead to misunderstandings later on.

Not being transparent

When filling out the information for buying a term insurance policy, be completely transparent with your insurer. Withholding crucial details can lead to rejections or policy cancellations. Disclose any pre-existing conditions when applying for a new policy, as such details eventually come to light.

Incomplete medical history

Your medical history plays an important role at the time of the claims process. The section detailing your medical history influences the acceptance or rejection of your claim. Insurers determine the premium amount based on these details. Therefore, provide up-to-date information regarding your and your family’s health history.

Neglecting policy lapses

A policy lapse means that the policy is no longer valid. Filing a claim on a lapsed policy is pointless as it will be rejected. You should ensure that the premiums are paid up on time. Insurers give a grace period for late premium payments. However, if the policy is not renewed within the grace period, claims won’t be honoured.

 

If you frequently indulge in skydiving or deep sea diving, it's best to mention it to your insuere in the declaration form 

For More Details: Pooja Manoj Gupta, visit www.giia26.com

Email: pmgiia26.com Mobile  9868944340