Just like loans, investments, credit cards and emergency funds are a part of our lives, insurance is an equally important component that ensures we remain financially healthy whenever life throws us into unexpected situations. While buying insurance is indeed vital, being aware of what can cause your insurance claim to be rejected, is crucial too.
Note that misrepresentation of data can be detrimental to life insurance claims. Do not try to hide anything or attempt to give false information. In all honesty, you should fill in details such as age, income, occupation, qualification, lifestyle (smoking/drinking), information on previous policies and claims if any, and other information in the application form carefully and correctly. These are important factors in deciding the premium. Incorrect or incomplete data can also constitute fraud and lead to the suspension of policy benefits and rejection of claims too.
Disclosure of previous and existing medical conditions, operations, surgeries, etc., is mandatory because it influences the policy premium. Most online term insurance premium calculators also require you to highlight lifestyle choices like smoking while computing the premiums since it affects the calculation and risk factor.
Health details of family members, especially conditions like cancer, cardiovascular diseases, high blood pressure, or any other hereditary conditions must be shared to avoid rejections of life insurance claims.
Also Read:?Why Life?Insurance?Premiums Are Cheaper For Women
For the unversed, a waiting period with respect to a health insurance plan means you need to wait for a certain period of time to avail of the insurance coverage. For example, some insurers cover pre-existing diseases or maternity benefits after a?waiting period?of a couple of years. The duration depends upon the terms and conditions of the insurance company. Your claim will get rejected in case you raise it for a condition on which a certain waiting period is applicable.
As we all know, upon the death of the life assured, the benefits are paid to the nominee or the beneficiary. It is, therefore, important to keep the insurance company updated about the details of the nominee, like their address, contact information, etc. Failure to do that causes trouble during the claim process and may lead to a rejection of your life insurance claim.
Moreover, choose your nominee wisely. A married person can nominate their spouse or children, while if you are single, then nominating your parents or any other family member would be a good idea. In case the nominee is a minor, a guardian also needs to be listed.
Since claims are settled only for active insurance policies, in case you have missed paying the premium, the policy lapses after the grace period (which is a maximum of 30 days in annual premium policies).
In such cases, all previously paid premiums account for nothing. Set up direct debit facilities to ensure that policies do not lapse. Still, if you forget and a policy lapses, try to revive it by paying the prescribed fees. It¡¯s worth your family¡¯s security.
Also Read:?5 Reasons Why Travel?Insurance?Is Not An Option But Necessity
For the latest and interesting financial news, keep reading Indiatimes Worth.?Click here.