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Never commit THESE mistakes, or lose your insurance claim!

New Delhi: Nowadays, people are more cautious about their life and they tend to buy life insurance and health insurance. Purchasing health-related policies has increased after the Covid times. If you are also going to buy an insurance policy, then be aware of the terms and conditions of the policy and take note of all […]

Edited By : News24 Desk | Updated: Aug 8, 2023 19:47 IST
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Life Insurance Policy
Always note that the policyholders must always update the details of nominee.

New Delhi: Nowadays, people are more cautious about their life and they tend to buy life insurance and health insurance. Purchasing health-related policies has increased after the Covid times. If you are also going to buy an insurance policy, then be aware of the terms and conditions of the policy and take note of all the important things related to the claim. There are several factors which lead to the rejection of insurance claim that needs to be paid attention to while insuring.

Not being able to pass a life insurance claim is a very painful process for the remaining family members. If the person taking life insurance is the sole earning member of the house and he dies, then the amount received from the claim can help the remaining family members in fulfilling their basic needs. On the other hand, if the claim money is not received, the family of the insured person suffers a lot. Therefore, it is advisable to be very cautious and attentive before taking a life insurance policy.

Not paying premium

Life insurance only works if the insured pays the instalments of the policy on time. In case, the insured forgets to pay his/ her instalment amount, then the insurance company provides an additional time of 30 days to pay any instalment due. Even if after the grace period the insured does not pay the premium, the policy expires.

Contest period

The time until 2 years of taking the insurance policy is called the contest period. The insurer rejects the insurance claim on the death of the insured during this time. However, not all insurance claims get rejected. If somebody dies in the middle of the contest period, the insurance company thoroughly investigates the information provided by the insured. That is why, it is always mandatory to give correct and updated information in the beginning only so that nobody suffers in the end.

Absence of a nominee

People who take policies usually make their parents nominees. Sometimes, there comes a situation when a nominee dies and the insurance claim is made after that. In situations like these, the insurance claim gets rejected due to the absence of the nominee. That’s why it is advised to always update the nominee’s details.

(Written by- Mahek Nigam)

First published on: Aug 08, 2023 07:47 PM IST

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