Term Insurance is a must-have investment that an individual must opt for. With the affordable premium amount, it offers cover against uncertain life risks. You can get a term insurance plan to secure the family’s happiness. Having a term plan helps you to meet your family’s financial goals, in your absence. Don’t let the mishap ruin your dreams, just choose a right term life insurance plan.
The probability of rejection of claims is usually less unless it is due to ignorance of the policyholder or beneficiary. You must avoid some mistakes to make sure the claim is not rejected, due to fault on your part. You must inform your nominee regarding the procedure of claims settlement, so he/she can get the claim settled with ease. Your nominee/ beneficiary must get educated properly to ensure that claim raised does not get rejected.
The rejection of life insurance claim is the scariest thing that could happen to your family in your absence. Here are some key points that will help you to ensure that term plan claim is not rejected.
There are various terms and conditions applicable in term insurance. In case, you don’t follow any clause specified in terms and conditions, then there is likelihood that claim under a term plan may get rejected. So, it’s always vital to read the terms & conditions of the term policy and follow all of those. Some of the key aspects that you should adhere with is to check the sum assured that beneficiary can claim. If your nominee raises the claim for an amount more than the sum assured, it can get rejected.
There is a specified deadline during which your nominee need to raise the claim. If the nominee raises claim after the deadline, he/she is at the risk of claims rejection. You should check the deadline and keep the nominee informed about it, so the nominee contact the insurance company during that deadline. Moreover, you must inform the nominee regarding the documents that need to be submitted such as duly filled claim form, death certificate of life insured, policy document, Last medical attendant’s certificate, etc.
The documents required for claim settlement depend on the plan purchased. When you buy a term life insurance plan, you can check for the same through the platform from where you have purchased it. Documents may vary and depend on the type of death. If any document missed, there are chances that your claim might be rejected, so the nominee must be aware about it. There are some documents such as claim form and policy document need to be submitted (in original) by the nominee to claim the cover amount.
One of the key reasons for rejection of term insurance claim is because of the expired policy. You need to make sure that the policy doesn’t lapse at the time of raising the claim. So to keep the policy active, you need to pay the premium depending on the chosen payment term of the policy. You would pay the premium as on monthly, quarterly, half-yearly or yearly basis.
Term Insurance is worth investing, as it ensures complete financial security for your family, in the event of your untimely demise. Buying a right term insurance plan is the key, so you must compare plans online, assess its features & benefits and pick the one that meets your family’s financial goals. You must keep the nominee updated about the procedure for raising the claim and the documents that need to be furnished at the time of term insurance claim.