A term insurance policy is an ideal way to protect your family from the uncertainties of life. Most people opt for term plan life insurance because it is quite affordable and you can avail a high coverage for reasonable monthly or annual premiums. Usually, such a high sum assured is a convenient amount and easily helps the policyholder’s family meet their financial expenses.
However, it is important that when the claim for the sum assured is filed, there should be no hassle regarding the claim settlement. It is no news that claim rejection is one problem that troubles policyholders and insurance providers alike. One way to avoid claim rejection is to buy insurance from a reputed life insurance provider so that the term plan claim settlement ratio is high and you won’t have to worry about your term insurance claim being rejected.
Other Ways to Avoid Term Insurance Claim Rejection:
Term insurance claim rejections are common when the information your nominee submits at the time of filing a claim has information that does not match the insurance company’s records. Keeping that in mind, these are a few ways to avoid claim rejection.
- Provide genuine information: Always be sure to provide the correct details with regard to your age, occupation, claims, date of birth and other particulars while filling out the insurance application.
- Fill the forms yourself: To avoid discrepancies in the information, fill the form yourself instead of having an insurance agent do it. Only you will be able to make the right choice while selecting the premium amount and other features for the term plan.
- Reveal medical history: Be sure to mention your lifestyle habits if you are a smoker along with any prior or existing health conditions. Even online premium calculators take your lifestyle habits into consideration while calculating the premium.
- Provide nominee information: A form with missing nominee details can cause the insurer to reject your claim as they will not entertain claimants whose details they do not possess.
- A lapse in the policy: Most people often forget to pay their insurance premiums on time, which could lead to a lapsed policy. This is one of the reasons why one may face a claim rejection. Insurance providers have a grace period beyond the due date of the premium payment date after which the policy lapses. To ensure that this does not happen, you can choose to set up an auto-debit facility or inform your bank about the payment date. Also, be mindful of renewing your policy on time before it lapses.
Claim rejections are also common when people cannot afford to make premium payments after a certain point in time. While purchasing a term insurance plan, ensure that you know how much premium you should be paying towards your policy, with the help of a term life insurance calculator.
How to use a term life insurance calculator?
To make the process of term life insurance premium calculation easier, you can use an online term life insurance premium calculator which helps you understand how much premium you should be paying towards your term plan. Using a term life insurance calculator is easy and can be done in three steps:
- Fill out your personal details such as your name, age, annual income and the life cover you’re looking for. You may also have to fill out details about your personal habits like smoking which could affect your premium amount.
- Next, enter the amount of sum assured you want to be insured for and the tenure of the policy. You will also be asked if you want the sum assured to be paid to your family in a lump sum or as a monthly income.
- In the last step, the premium calculator shows some term insurance plans that match the requirement you’ve provided. This is where you can compare the various policies and choose one that is closest to what you need.
Preventing your term plan claim from being rejected is no rocket science. All it takes is providing the right information and paying your premiums on time. Using a term life insurance calculator to calculate your premium amount can aid this process and make it easier to choose a term plan that is best suited for you.