Insurance Tips: Some minor mistakes are the reason for rejection of life insurance and health insurance claims. If these common mistakes are kept in mind while taking the policy, then there will be no problem in getting the insurance amount.
People’s inclination towards life insurance and health insurance has increased after the Corona period. Now more and more people have started taking insurance policies. If you are also taking an insurance policy, then it is important for you to know all the important things related to the policy terms and claims. Some things play an important role in insurance claim rejection, which are usually not given much importance while getting insurance.
It is very painful to have a life insurance claim rejected. If the person taking life insurance is the only earning person of the family and he dies, then the amount received from life insurance helps a lot in the survival of the family. At the same time, if the claim money is not received then a big problem arises in front of the family. Therefore, before taking a life insurance policy, one should always be aware of those things due to which the insurance claim may be rejected.
Giving wrong information:
While taking life insurance, if the person taking the insurance has given any kind of wrong information, then the chances of the insurance claim being rejected increases. Giving wrong information regarding health, age, weight, height or income: If the insured gives wrong information while taking the policy, then the insurance claim can be rejected.
Non-payment of premium:
Life insurance remains active only when the insured pays the premiums on time. Insurance companies also give additional time of 30 days to pay any premium when it becomes due. If the insured does not pay the premium even within the grace period, the policy lapses.
Contest Period:
The period of 2 years after taking the insurance policy is called contest period. The insurance company rejects the insurance claim if the insured dies during this time. However, it is not that all insurance claims are rejected. In case of death during the contest period, the insurance company thoroughly investigates the information given by the insured. That is why correct information should be given in the beginning itself so that there is no problem later.
Absence of nominee:
Generally policyholders make their parents their nominees. Many times it happens that the nominee dies and the insurance claim is made after that. In such a situation, if the nominee is not present, the insurance claim gets rejected. Therefore, the policyholder should always keep his nominee details updated.
