You have understood the importance of life insurance and are looking for where to purchase life insurance. Or you have done all that you could for your beloved family and became a star up above the sky. However, certain situations will ensure rejection of life insurance claim! Shocked?! Here are a few reasons your life insurance claim may get rejected when you claim it.
Why and when will they refuse your claims?
- Providing false information
If you give incorrect info, when it is discovered (it will!) your insurance company will reject the claims! That’s because you have made a mistake by lying. Speaking untruth is incorrect.
Concealing existing medical history and ailments
Hiding important information while filling the life insurance application form is another big mistake you could possibly make. Again, you are speaking untruth by hiding relevant information. That way, the insurance company will reject claims and there will be no point in buying the insurance in the first place! Inform them about your medical history.
Not paying your premiums on time
Life insurance will be active so long as you keep paying premiums regularly. Letting the policy lapse is like paying little money and not securing your loved one’s future in your absence at all! Sometimes, despite the insurer sending mailers or reminder messages to the address mentioned on the application form, people neglect paying premiums.
A death that wasn’t covered in the policy became yours
Really unfortunate and there is little you can do about this. None of us can predict how, when, where and why an individual will die. You can try preventing this situation by reading the document carefully, especially the exclusions. For instance, you might have died in a war, committed suicide, did hazardous activity resulting in your death. You might even die due to a pre-existing illness!
You forgot appointing a nominee
30% of the young Indians opt for a life insurance policy at the beginning of their careers mainly to save tax and they happily appoint their parents as nominees. Time passes by. They marry and have children. But you haven’t updated your nominee yet! Your spouse might now be the nominee but you haven’t updated it. Change the nominee details.
You die during the contestability period
If you die soon after purchasing a life insurance, your insurance company will be suspicious and mistrustful. Every life insurance company has a contestability period ranging from 1 year to 2 years.
An Under qualified Agent
You have to consult an experienced agent as your guide. Their experiences expose you to full options at your disposal and acquire foremost policies.
These are seven reasons your life insurance claim can get rejected/denied. Be careful and read the fine print.
For more information visit www.moneymindz.com or give a missed call to 022-62116588
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