How to Ensure that Your Term Insurance Claims are Never Rejected

Term insurance plans in India can be an extremely useful financial product. It is the most basic form of insurance to buy within a reasonable budget. They ensure a family is financially secure in the absence of their breadwinner. You can protect your loved ones in exchange for the lowest possible premiums. Apart from that policies offer tax benefits too.

However, a reputed company might not be liable to settle claims with the beneficiaries due to several possible reasons. This could be a terrifying thing to happen to your family when you are not around.
This adversity can be avoided by being aware of the common loopholes. So, here’s a detailed guide on how to make sure the term insurance sum assured is paid without hassle.

Ø Correct Information

There should be no misinterpretation of data in the term policy. Fill in all the details of age, qualifications, medical history, and general habits and lifestyle personally. Make sure all the information is adequate and true to your knowledge. Try not to conceal anything like a bad habit or previous hospitalizations. A callous attitude while completing the proposal form can also lead to discrepancies and ultimately a rejection of the claim.

Ø Don’t Skip Premiums

Term plan benefits can only be active when you pay timely premiums. Otherwise, the policy might lapse after the grace period; leave alone receiving death claims. So, try to set up a reminder on your phone. You can consider clearing the instalments before the due date. Customise the frequency to suit your financial capabilities. This way you are less likely to face trouble while clearing the premiums. For example, you can pick monthly or quarterly payments offered by the best term plan.

Ø Transparency of Medical History

Premiums of best term insurances are decided based on existing medical conditions. So, try not to hide information regarding operations or ongoing treatments. Be open about all the procedures like chemotherapy, plastic surgeries, dialysis, or radiation. Otherwise, it can lead to major complications at the time of sum assured disbursal. So, furnish all the information and keep the necessary documents handy as proof.

Ø Update Nominee Information

The insurance company must have all the details of the nominee. This will include contact information and address clearly along with your relationship with them. Do mention everything clearly on the policy document. Make sure to update the particulars as and when required. This way the data provided will match the actuals of your insurance beneficiaries. It can help evade the chances of claim rejection.

Ø Be Aware of Exclusions

Policy documents need to be read carefully to remain aware of exclusions. Often a person skips this part, which leads to problems for the nominees in the future. Insurers are clear about circumstances in which a claim might not be approved.

By reading the sales brochure and policy document carefully, it is possible to avoid claim rejections. Also important is the knowledge about what a term insurance plan is, before making a purchase so that you can understand whether it suits your long-term financial goals or not.