7 Tips on How to Avoid Insurance Claim Rejection

Nov 11, 2019 | 4 weeks ago | Read Time: 3 minutes | By iKnowledge Team

The main purpose of a life insurance policy is to secure the financial future of your family, even when you are not around to take care of them. However, occasionally Insurance companies can reject life insurance claims for various reasons, out of which some of them can be avoided easily.

Here, we talk about if you submit proper and complete claims to your service provider, then your claims are processed on time without causing much delays:

  1. Keep your nominee well-informed

You might have nominated your spouse for getting the claims of your life insurance. Nevertheless, the purpose of nomination is defeated if they are unaware about the details of your insurance policy. As a policyholder, you should inform your spouse about the complete details of your policy and the paperwork that is necessary for successful approval of claims. It would be of great help to you if you maintain a checklist of your insurance and make your family and nominee aware of the same.

  1. 100% transparency, always

When you fill up the insurance forms you need to be very transparent about the details that you furnish. Don’t hesitate to tell the insurance company about your existing medical conditions, hereditary diseases, nature of your job, monthly income and about your smoking/drinking habits. If you don’t furnish the facts, the insurance company can still find out about the same, at the time of verification of claims. As a result, your claims will be rejected right away.

  1. Self-dependant

Many policyholders allow their insurance agents to fill up the forms because they shy away from the paperwork. If you don’t like doing paperwork, you can get an online insurance policy from Aegon Life. The process is very simple, and you don’t have to depend on anyone else to fill in the information for you. Provide the right information and right documentation and enjoy the benefits of this policy always – even at the time of settlement of claims.

  1. Timely premium payments

 You should pay your premiums on time, always. Irrespective of whether you are paying monthly, quarterly, half-yearly or annual premiums, you should pay them on time to avoid claims rejection. Constant delay in premium payments will result in the lapse of a policy. Two unfortunate consequences happen upon a policy lapse. Firstly, you are no longer eligible for the maturity benefits of the policy. Secondly, the premiums that you have paid until the lapse will not be given back to you.

  1. Be open to medical tests

When you are asked to go through a medical test by your insurance company, you have to accept it with an open mind. These tests serve as proofs for the details that you have mentioned in the form. When you hesitate for these tests, there is a very high probability of rejection when your family submits the claim form.

  1. Detailed study of the policy

You must have noticed the terms and conditions of an insurance policy written in small print, at the end of the document. Most of us ignore this, but it is a huge mistake. You must read through all these terms to understand the inclusions and exclusions of your policy. You should decide to take up the policy only after scrutiny of these terms.

  1. Appoint a nominee

The entire purpose of a life insurance policy is defeated if you haven’t named your nominee for receiving the claims. Usually, single policyholders provide their parents’ names, and married policyholders furnish their spouse’s name as nominees. If you want to update the nominee at any time during the policy, contact your insurance service provider. It is always important to keep the nominee list updated to avoid claims rejection. In a nutshell, being transparent and furnishing all the required information at the time of filling up your insurance form are the two major steps you should follow to avoid claims rejection. To know about Aegon Life Insurance’s products like term insurance, visit our home page.

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