4) 7 Ways to Avoid Life Insurance Claim Rejection
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.
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. 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.
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.
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.
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.
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.
Thoroughly Scrutinize The Policy Document:
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.
Source: bankbazaar
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. 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.
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.
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.
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.
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.
Thoroughly Scrutinize The Policy Document:
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.
Source: bankbazaar