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 at the time of taking the policy, then there is no problem in getting the sum insured.
People’s trend 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 you must be aware of the terms of the policy and all the important things related to the claim. Some such things have an important role in insurance claim rejection, which are usually not given much attention while insuring.
Getting a life insurance claim rejected is very painful. If the person taking life insurance is the only earning person in the house and he dies, then the amount received from life insurance helps a lot in the survival of the family. On the other hand, if the claim money is not received, then a big problem arises in front of the family. That’s why always before taking a life insurance policy, those things should be known, due to which the insurance claim can be rejected.
Giving wrong information
While taking life insurance, if the insured person has given any kind of wrong information, then the chances of rejection of the insurance claim increase. 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 installments on time. Insurance companies also give an additional time of 30 days to pay any installment due. If the insured does not pay the premium even within the grace period, then the policy lapses.
Contest period
The time till 2 years of taking the insurance policy is called contest period. The insurance company rejects the insurance claim on the death of the insured 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 so that there is no problem later.
In the absence of a nominee,
policyholders usually make their parents as nominees. Sometimes it happens that the nominee dies and the insurance claim is made after that. In such a situation, the insurance claim gets rejected due to the absence of the nominee. That’s why the policyholder should always keep his nominee details updated.
Life insurance is also a wonderful thing for investment, people should know this with returns
