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Tips To Ensure Your Life Insurance Claims Gets Processed Smoothly

Updated On Sep 13, 2021

The foremost reason for getting a life insurance policy is to protect your family and loved ones in the case of any unfortunate event. Having an adequate life insurance cover for your loved ones can only be useful when your claim gets processed smoothly. There are possibilities that you could make a few mistakes that may result in the rejection of the life insurance claim by the insurer. To avoid this, it is essential that you thoroughly understand the terms and conditions mentioned under the policy wording, claim process and list of required documents before starting your claim process.

Tips To Ensure That The Claim Process Is Smooth

Here are some things you need to do to ensure the smooth processing of your insurance claim.

  • Providing The Adequate Information In The Application Form

Hiding or providing incorrect information about yourself may lead to fraud and result in claim rejection. Insurers take into consideration details like your age, occupation, income, existing life insurance cover, habits (smoking/alcohol consumption), profession, etc. in the application form while deciding your premium. In case of any unfortunate event, your nominee claiming the life insurance policy will need to share the exact cause of death & other relevant information & documents shared while taking the policy. So it is very important for you to review the details before submitting your application form and ensure you’ve entered all the correct information for easy processing of your life insurance claim.

  • Ensure The Nominee Details Are Correct

When you purchase a life insurance policy, it is also important to appoint a nominee. Doing so will ensure that in case of any unfortunate event, the nominee can avail the entire coverage and benefits of the life insurance policy. Also ensure you mention their correct details, such as name (as per official documents), date of birth and your relationship with them. You should also inform them of the sum assured they are entitled to. It is also advisable to keep your nominee updated about any changes you make to the policy and provide them with the details of your insurer. This will ensure that they can get in touch with the insurance company at the earliest to start their claim process and get it processed on time.

  • Disclose All Your Insurance Policies

Sometimes having more than one insurance policy can give you added protection. For instance, a policy provided by your employer might not offer adequate life insurance cover. So, getting an individual plan is always a good idea to ensure you have added protection. However, in such cases, it is important to divulge the details of any existing life insurance policies you have, if your insurer asks for details when applying for a new one.

  • Pay Your Premiums On Time

To make sure that your insurance policy is always active, always pay the premium on time or at the very least within the grace period which is mentioned in your insurance policy document. Knowing the details of your policy and premium - for example, the exact grace period - can help you stay on track with your premium. This is an essential part of ensuring a smooth claim process. Please remember your life insurance claim will be rejected if the policy is lapsed.

  • Submit The Correct Documents

Insurance companies require you to provide certain documents as per the policy requirements while filing a claim. Any incorrect information or change in details, without informing the insurer beforehand, can result in your claim rejection. So, make sure to document all necessary changes and fix any errors at the time of purchasing your life insurance policy. It is also essential that you submit all the necessary documents as asked for by the insurer. In case a document is rejected or needs additional information, make sure to submit them as per the deadline mentioned by the insurer so that your claim can be processed smoothly. 

  • Read The Policy Wording Carefully

Knowledge of the policy terms and conditions empowers you to make an informed decision. It is particularly important to understand the inclusion and exclusions under the life insurance policy you are buying to ensure that the claim you make gets approved. If you make a claim for something that is not mentioned or explicitly stated under the exclusions in the life insurance plan, your claim will be rejected.  

Conclusion

Choosing the right insurance provider is an important step to ensure your family’s financial security. An important parameter to select an insurer is to review the Claim Settlement Ratio, which is the percentage of claims settled by an insurance company in a year. A high Claim Settlement Ratio is indicative of an insurer’s reliability in settling claims.

Also read: Common Terminologies Of A Life Insurance Policy

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Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.        

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