Term Insurance: If you have taken a term policy or are thinking of taking one, then do research first, so that the family does not have to face financial crisis later, it is better to find out in advance under what circumstances insurance companies reject the claim. Can do.
Term Insurance: After the death of the policyholder, the claim amount is the biggest financial support for the family. People take term plans to provide financial security to the family. In today’s era, term insurance is necessary for everyone. But many such cases have come to light when insurance companies reject the claim. The fault behind this lies with the policy holder.
This is not done by just taking a term plan, its rules also have to be followed. Term plan does not provide sum assured on death in every way. Therefore, if you have taken a policy or are thinking of taking one, then research it first, so that the family does not have to face financial crisis later, it is better to find out in advance under what circumstances insurance companies can reject the claim. Are.
1. Death in an accident while drunk: There may be problems in getting a claim in case of death in an accident while driving while intoxicated. Often the claim is rejected even in cases of death due to overdose of drugs or alcohol. This is already mentioned in the policy, hence on such death the insurance company refuses to pay the claim amount of the term plan.
2. Suicide of the policyholder: If the policyholder commits suicide within a year of taking the term plan, then in case of Linked Plan (ULIP), the nominee is entitled to receive 100% of the policy fund value. Whereas in case of non-linked plan, 80 percent of the premium paid is given to the nominee. Simply put, even if someone dies by suicide, his family members get cover. The condition for this is that the death of the policyholder should occur after one year of taking the term plan.
3. Murder of the policyholder by the nominee: If the policyholder is murdered and the nominee is accused of murder, then the insurance companies put the claim on hold. If the accused nominee is acquitted then the claim amount will be received. But if the fault is proved then the claim is not available.
4. Murder in criminal activities: According to the rules of insurance regulator IRDA, if the policyholder is involved in any criminal activity, and then he is murdered during any criminal activity, then the claim amount is not available.
5. Death during a dangerous stunt: If the policyholder dies while performing a dangerous stunt, then the insurance companies reject the claim of the term plan. This includes vehicle racing, sky diving, scuba diving, para gliding and bungee jumping.
6. On concealment of a serious illness: If the policyholder hides any chronic serious illness while taking the term policy, and later the policyholder dies due to the same illness, then the insurance company can reject the claim. Apart from this, claim amount is not available even on death due to HIV/AIDS.
7. Death due to natural disaster: If the policyholder dies due to natural disaster, then the claim amount is not received. Insurance companies reject claims on death due to natural disasters like earthquake, storm or cyclone.
8. Death during childbirth: Apart from this, if a woman policy holder dies during the birth of a child, then in this situation also the nominee does not get the compensation claim amount. Because it is not covered in normal term policy. Therefore, when buying term insurance, read all its aspects in detail.
