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  • 7 Ways to Avoid Life Insurance Claim Rejection

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    More often than not, getting claims honoured by life insurance companies is an uphill battle. There are so many clauses, conditions and exceptions in insurance policies today that people are expected to fall ill by contracting a specific disease under specific conditions at a specific time in the day and inform the insurer at a specific time through a specific channel, and only if you’re under a specific insurance plan. Failure to meet any of these conditions would result in no insurance benefit being paid out, and the company being legally allowed to tell your dependants to take a hike.

    Most often, insurers rely on legal loopholes and clauses in their policy documents to avoid making payments of sums assured, but a surprisingly large number of times, the fault and blame belongs to the customers themselves.

    Here are seven things you as a customer can do to ensure that you always get paid what’s due to you by your life insurance provider.

    1. Don’t conceal information.

      Literally any bit of information you don’t (or forget to) tell the life insurance company which can have an impact on your health, or result in any medical condition that requires hospitalization or the payment of death benefit is considered as “concealment of information”. Any disease or ailment requiring you to make a life insurance claim will be tracked back and traced to anything in your application form that indicates that this disease or ailment was a possibility. Any pre-existing disease or condition or smoking/drinking habits or anything that can be linked as being a cause to your hospitalization or death will be investigated and, if you haven’t told the company about it, sum assured and other benefits will not be given to you or your dependants. Your premiums are decided on this information, so be clear and open while furnishing it. If there is nothing that you’ve concealed, there’s nothing that can be held against you and the insurer will have to pay your sum assured.

    2. Pay your premiums on time.

      Insurers will only settle claims on active insurance policies. There are an astonishing number of people who do not understand that delaying premium payments result in lapsed policies. Once your policy lapses, you are no longer covered and all your premiums paid that far will be rendered useless. The premiums will neither be returned to you nor will they have any legal validity to ensure that you or your dependants get your sum assured or death benefit from the company. In some cases, delaying your payments could also lead to penalty charges and reinstatement charges. Also, if you have a clean track history of making premium payments, the insurer will have one less point to haggle over when it comes time for a settlement.

    3. Update nominee information.

      Your named nominee is the person who will receive any and all benefits that come out of your insurance policy, when the time comes. If you’re single, naming your parents as nominees would be the sensible way to go. Once you’re married, name your spouse and children. Whatever your present relationship status is, always keep a nominee named so that some benefit will go to some dependant of yours somewhere. Nominees are generally those whose livelihoods are directly dependant on you being alive and well.

    4. Don’t delay in filing insurance claims.

      It may be the last thing on your mind in a medical emergency, but a quick call to your insurance company could spell the difference between having or losing insurance cover. It’s a good idea to give a trusted friend, colleague or relative your emergency insurance information to call and intimate the insurance company in case you are unable to do so yourself. Basically, the life insurance company needs to be kept posted about the events for which they will be held financially liable later. The sooner you intimate the company about whatever has happened that requires medical attention, the easier your claim processing will be. Insurers also consider delays in intimation of hospitalization as indicators of potential fraud. Timely intimation can also keep you clear of this accusation.

    5. Fill out your insurance application form yourself.

      Do not trust that well dressed, constantly smiling, and question-avoiding insurance agent with the responsibility of filling out your forms. Insurers decide your premium payment amount, overall coverage, and even some exclusions based on what’s filled out in your forms. Merely telling the insurance agent everything about your medical history will not qualify him to understand and explain on the form the more difficult intricacies of your medical history. You will need to take the time out of your day and get your records in order and truthfully fill out all the details in the forms by yourself. No one knows you better than you, and you need to make sure the insurance provider knows, too. Withholding tobacco and alcohol consumption habits will be a problem if the reason you’re hospitalized can be traced back to alcohol or tobacco consumption. Agents fill forms fast to meet sales targets, and couldn’t care less what becomes of you in the future. Is that a person you want to trust with potentially huge amounts of money that could become due to your dependants in their most dire times of need?

    6. Accept medical examinations.

      Insurance companies sponsor your medical tests and examinations to get a better understanding of your medical condition. The more they know, the less they can say was withheld as a reason to avoid giving you your sum assured that’s due. These tests may also help you detect diseases early, and treat them accordingly. This is most common for health insurance policies, but can be important for life insurance policies also, giving the hospitals and life insurance companies a good idea of your present health condition, to see where it may go in the future.

    7. Thoroughly scrutinize the policy document:

      One of the primary reasons the policy document even exists is to release the company from any legal and financial liability that could arise out of signing a contract with you. If you contract an illness, randomly drop dead, or require an insurance claim because of any of the reasons in the “exceptions” list, you can say goodbye to your hopes of receiving any kind of benefit from the insurance company. Clauses such as the exceptions list that indemnifies the insurer from any kind of liability towards you exist all over your policy document. It is important to diligently and thoroughly dissect your policy document to ensure that none of the clauses mentioned therein are a possibility. And if they are, you can probably re-negotiate your policy document with your insurer. If your insurer doesn’t budge on clauses and conditions, there is no shortage of insurance companies out there that would love to have you as a customer. It is important to note that most insurers will not budge on exceptions, but may allow wiggle room on certain conditions.

    Keep yourself informed and abreast of all developments with your insurer. Keep yourself informed about the details in your policy document. Stay diligent and well informed about the conditions under which you will be eligible for a claim. Life insurance is not just a tax saving tool, it’s a serious financial product which, if used correctly, can be a saving grace for your family and dependants.

    7 Ways to Avoid Life Insurance Claim Rejection Reviews

  • Page 1 of 23 1 2 3 4 5
    • Kotak Life Life Insurance
      "Recommendbale term life"
      0.5 5.0/5 "Blown Away!"
      Its one of the best policy with Kotak Mahindra on my term plan, it has low cost with better benefits. For any incident they are providing life cover and they have good claim settlement and renewal. Premium I used to pay around Rs. 12,500 it has term of 24 years for 1 crore coverage.
      Was this review helpful? 0
      , bangalore
      Reviewed on Nov 17, 2018
    • SBI Life Life Insurance
      "Satisfied policy. "
      0.5 4.0/5 "Great!"
      I have got my accidental covered life insurance policy with SBI LIFE. I used to pay the premium amount of Rs. 1000 per annum. I used to make the premium through my account. They have given me a claim amount of Rs. 20 lakhs. I have purchased this policy only for me and i have to renew the policy every year. 3 months back, i had renew the policy.
      Was this review helpful? 0
      , bangalore
      Reviewed on Nov 13, 2018
    • review Life Insurance
      "Excellent service"
      0.5 5.0/5 "Blown Away!"
      I have been applied for my Health insurance with Indusind bank , till now i have not use claim yet, and they have charge me premium amount 3000 rupees, i usually do my insurance payment with credit card or pay app, and there customer support team is good.
      Was this review helpful? 1
      , gurgaon
      Reviewed on Oct 30, 2018
    • Aegon Life Life Insurance
      "Excellent "
      0.5 5.0/5 "Blown Away!"
      I have taken life insurance policy from AEGON via bank bazaar, the response and customer service is very good. Claim settlement ratio was above 90% so it was a confident decision in choosing as my life insurance provider. I definitely recommend AEGON
      Was this review helpful? 0
      , bangalore
      Reviewed on Oct 08, 2018
    • ICICI Prudential Life Insurance
      "Average Service"
      0.5 3.0/5 "Satisfactory"
      It has been a very good experience with them and i had not made any claims till now. The insurance policy will cover all the metal parts and i had been paying the premium annually. I had been making the premiums directly and there has not been any issues faced so far.
      Was this review helpful? 1
      , noida
      Reviewed on Jul 29, 2018
    • Bajaj Allianz Life Life Insurance
      "Secure Child's Future"
      0.5 5.0/5 "Blown Away!"
      I have child plan policy with Bajaj allianz. I took this policy to secure the future and education of my child. It is one of the best long term investment option I have made for my childs future. Premium is low and the claim settlement ratio is high. As per my experience, I would recommend this policy to others. Link to get more Info: https://www.bajajallianzlife.com/
      Was this review helpful? 0
      , bangalore
      Reviewed on Jul 24, 2018
    • Bajaj Allianz Life Life Insurance
      "Invest for Child's Future"
      0.5 5.0/5 "Blown Away!"
      Finally, after doing an extensive reserach, I bought a child plan from Bajaj Allianz life at very low premium. The coverage of policy is good and as per my research it also has a high claim settlement ratio. It really is a fanatastic future investment for my child for her education and other heavy expenses. Link to get more Info: https://www.bajajallianzlife.com/
      Was this review helpful? 1
      , hyderabad
      Reviewed on Jul 22, 2018
    • Bajaj Allianz Life Life Insurance
      "High Claim Settlement Ratio"
      0.5 5.0/5 "Blown Away!"
      I have taken a term life insurance from Bajaj Allianz life insurance. It is a great policy which has got a very high claim settlement ratio. It is the best investment option I have opted for and also the premium that bajaj offers is great compared to other private sectors. They even offer wide range of insurance policies based on the customer requirements. Link to get more Info: https://www.bajajallianzlife.com/
      Was this review helpful? 0
      , bangalore
      Reviewed on Jul 19, 2018
    • Aegon Life Life Insurance
      "Average Service"
      0.5 3.0/5 "Satisfactory"
      I've a term life insurance policy with the Aegon Life. I am paying a premium of 5000 per year, The sum assured is 50 lacs. I am making payments online. Claim settlement ratio was above 90% so it was a confident decision in choosing as my life insurance provider.
      Was this review helpful? 0
      , pune
      Reviewed on Jul 14, 2018
    • LIC Life Insurance
      "Good Policy"
      0.5 4.0/5 "Great!"
      This is the Good policy for life insurance, i have 16 years of tenure period , its having good and fast claim process. Till now not faced any issue. I make payments through monthly ecs. Low amount had to pay every month which is minimum.This policy coverage has accidental and critical illness coverage. I got income tax benefits from this policy.
      Was this review helpful? 0
      , bangalore
      Reviewed on Jul 03, 2018
    • ICICI Prudential Life Insurance
      "Promising Features"
      0.5 4.0/5 "Great!"
      I've a life insurance policy with the ICICI Prudential and I pay a premium of 4000 Per year.. There is no limit for the claim amount. It offers 10 Lac coverage for cardiac and cancer treatment as well . Considering the features and the low premium it is a promising policy to have.
      Was this review helpful? 0
      , pune
      Reviewed on Jul 02, 2018
    • LIC Life Insurance
      "Good policy"
      0.5 4.0/5 "Great!"
      With Life insurance corporation of India i hold Jeevan saral policy and the premium is 6000 which i have to pay every month. The total maturity period is for 21 years. After completing the maturity period we could able to claim the sum assure and the mentioned bonus. For payment mainly i do ECS.
      Was this review helpful? 0
      , mumbai
      Reviewed on Jun 30, 2018
    • LIC Life Insurance
      "Good Life insurance policy"
      0.5 5.0/5 "Blown Away!"
      If i missed my due date, the ECS is deducted from the bank where it is got deducted. In the branch the services is good. I never claimed the policy so far. I can claim this policy after 16 years. I used to make the payment through cash. Once i completed my policy, my amount will include some bonus and interest.
      Was this review helpful? 0
      , mumbai
      Reviewed on Jun 13, 2018
    • LIC Life Insurance
      "Good policy"
      0.5 5.0/5 "Blown Away!"
      I took this Money back policy from Lic insurance company mainly because of the good returns, its long tenure process of 20 years , the Am making the payments monthly which it get auto debited . The best about the policy is claim rate is high compared to other policy available in the market. Their customer service and customer response is good .
      Was this review helpful? 0
      , yamuna nagar
      Reviewed on Jun 04, 2018
    • HDFC Life Life Insurance
      "Best Service"
      0.5 5.0/5 "Blown Away!"
      I have taken this insurance mainly because as i used to travel to many place for security of family i had taken as it is low premium amount which will be added to my loan amount. Where the claim can be taken only on dismissal and permanent disability. I got my hard copy from bank , there is no processing fees.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Jun 02, 2018
    • ICICI Prudential Life Insurance
      "Best Service"
      0.5 5.0/5 "Blown Away!"
      It has low premium value , The claim can be done only on dismissal and permanent disability . Where the claim ratio is based on the monthly installment which i paid based on that principle amount calculated for the claim . I have taken this Insurance from personal loan . As myself asked the executive to add the premium amount to my loan amount.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Jun 02, 2018
    • LIC Life Insurance
      "Very good policy"
      0.5 4.0/5 "Great!"
      I got my Life insurance from life insurance corporation of India. As i got tenure period of 16 years with policy coverage till 60 years . I pay the payment annually through online banking . Its good policy as it has good benefits and claim ratio.
      Was this review helpful? 0
      , new delhi
      Reviewed on May 28, 2018
    • Max Life Insurance
      "Excellent Term Insurance"
      0.5 5.0/5 "Blown Away!"
      Ride facility is available. Low premium for the customer. I never compared the benefits from the other companies. I choose this policy for the tax benefits. I used to make the payment annually. They are giving the sum assured amount of Rs. 1 Cr. and i used to the pay the premium of Rs 15000. Add on service and medi-claim is there in this policy. Medical benefits are available. After policy, we can claim the policy for medical benefits.
      Was this review helpful? 0
      , chennai
      Reviewed on May 28, 2018
    • LIC Life Insurance
      "Average policy"
      0.5 4.0/5 "Great!"
      I took Life insurance policy from Lic insurance company 3 years before mainly because of the good returns, its long tenure process , the payment am doing through online monthly .The best about the policy is claim rate is high compared to other policy available in the market. Their customer service and customer response is good .
      Was this review helpful? 0
      , mumbai
      Reviewed on May 18, 2018
    • LIC Life Insurance
      "Best policy"
      0.5 5.0/5 "Blown Away!"
      I took a policy from LIC insurance company mainly because of the good returns also it has got long tenure process. I am making the payment through cheque quarterly . The best about the policy is claim rate is high compared to other policy available in the market. Their customer service and customer response is also good .
      Was this review helpful? 0
      , secunderabad
      Reviewed on May 13, 2018
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