The main purpose of buying a life insurance policy is to give financial security. The policyholder pays premiums with the hope that, after their death, the insurance company will pay money to the nominee. This money is meant to make sure the spouse and children do not face financial problems. Many people even buy policies worth crores of rupees for this reason. But the family’s trouble can increase if the insurance company rejects the claim after the policyholder’s death.
Experts say insurance companies are more interested in selling policies than approving claims. Many times, claims are delayed. In some cases, the company rejects the claim. The common reason they give is non-disclosure of facts. They say the policyholder did not share some information when buying the policy. After the policyholder’s death, it becomes very hard for the family to prove these claims wrong.
Claims are often rejected due to hidden facts
Many times, companies reject claims saying the policyholder did not share all details. The most common reason is not telling about a pre-existing medical problem. Some companies also say the person was a smoker or drank alcohol but did not mention it while buying the policy. If such facts are hidden, companies use it as a reason to reject the claim. Premiums are usually higher for people with medical issues, or for those who smoke or drink.
Disclosing facts helps avoid claim rejection
Experts say that when buying a life insurance policy, you should share your full medical history. If you have health problems, or if you smoke or drink, it is better to tell the company. This may increase the premium a little, but the company will not be able to reject the claim later. Many people take the process lightly because companies sell policies in a hurry. But in the end, this carelessness harms the policyholder, not the company.