How to Avoid Claim Rejections in Term Insurance?
Educate beneficiary to avoid term insurance claim rejection
Term Insurance is one of the basic investment that an individual must have. With the minimum investment, it offers cover against huge risks. You may buy a term insurance plan to secure family. But your soul may not be able to check whether your family is able to get the financial support as you expecte. There are a few mistakes that you must avoid and educate beneficiary to avoid term insurance claim rejection. By avoiding certain mistakes you can ensure that family gets the claim amount as planned.
This can help you to secure your lfinancial aspirations as well. Let a small carelessness not ruin your dreams and efforts that you made in selecting the right term insurance plan online. Usually, rejection of claims is very less unless it's because of the ignorance of the policyholder or their beneficiary. You can always keep your nominee informed about the criteria of your term insurance plans and ensure that your claim is never rejected. Some of the simple techniques by which you can ensure that term plan is not rejected are as follows.
- Terms & Conditions of the Policy
Most of the features of term plan is elaborated in the terms and conditions. If you violate any clause of the terms and conditions of policy than there are chances that claims against term plan cannot get rejected. Some of the things that you must check are what is the total amount of sum insured that beneficiary can claim. If you raise the claim more than the sum insured than there are chances that it can get rejected.
- Submit the Documents Within the Due Date
There is a deadline within that you must raise the claim. If you
- Follow the Formats of Documents
Documents must be submitted as per the requirements of term plans. You can check the same through the platform from where term policy is purchased as well. Documents are also dependent upon the type of death. The beneficiary must have an awareness about the same. In case any document is missed then there is a good chance of claim rejection. It's also important that certain documents must be submitted in original. The claim form is also a mandatory part of the documentation. The beneficiary can easily collect the same from the insurance firm.
- Policy Must be Active
One of the reasons for claim rejection can be the expired policy. You must ensure that policy does not lapse at the time of raising the claim. In order to keep policy active, you must pay the premium regularly as per the payment term of the policy. You might be paying monthly, quarterly, bi-annually or yearly.
- Check the Type of Death
Certain deaths are strictly not covered while raising the claims. These deaths can be intentional murder conducted by beneficiary. Death due to natural calamity or terrorist attacks is also not covered in term plans.
- Details Should be Submitted by Beneficiary Only
Claim against term plan should not be raised by anyone besides beneficiary at the time of demise of the policyholder. You may keep nominee informed about the same to avoid the claim rejection.
The term insurance is worth investment if done with complete awareness. Buying a suitable term insurance plan is the easiest task nowadays with the assistance of web aggregators like PolicyX. You can choose your Term plan from so many firms like ICICI Prudential, PNB Met Life, SBI Life, Max Life, LIC term insurance and many others. The need of the claim arises at the time of the demise of the policyholder. Certain plans may offer you the survival benefits as well. You can always keep yourself updated about term plans and raise the claim accordingly.
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