Have your health checked up
Policy is issued only after the company’s employee thoroughly check the application. Therefore, providing comprehensive details is a must. Company will request those seeking large sum as insurance to have their health checked. Never ever decline those tests. Even if the company does not warrant a medical test, you make it a point to volunteer for such. Not doing so will make the company think that you have intentionally masked your health issues.
Should provide details of old policies
Many feels that they should not disclose details of old policies. But, regulations mandate disclosure of any policies the applicant already holds. At the time of claim, insurance companies search for any loopholes in the claim in order to get a foothold on declining the claim. Therefore, the claimant should take extra care not to give such an opportunity to the insurance company
Police should not lapse
Policy stands in force only if the premium is paid in time, otherwise it obviously lapses. There is no chance of claim in such cases. Companies generally give a grace period for paying premium after the expiration of due date. The policy will not lapse even if premiums are paid during this grace period. Think of how can you claim a police that is not in vogue and lapsed?
What to companies say?
Giving wrong information about health, misleading about present ailments and diseases are the main reasons for denial of life insurance claim, says HDFC Life Insurance Product Division Vice President Sanjay Tiwari in an interview. He said that a claim will be reject if serious problems like cardiac diseases and other health issues are not disclosed. That is the reason why the insurance companies ask the reason for death at the time of claim.
95% of the reason for a claim rejection is wrong information, or hiding key info. He also says that it is not only important to get health check up while taking a policy but is also key to mention the health history of family members. He says that complete health details cannot be obtained with health check up alone.
He suggests that the applicant should provide the information if any of the family members have cardiac issues, problems like diabetes in the family, and if any treatment take for health till date, etc.The Information should comprehensive, which is very crucial to avoid claim denial. Following all these precautions help the applicant give a proper support to the dependents even after their life.
Safer if application is filled by self
Application should be filled by the policy holder only. This allows one to read the whole policy and comprehend it properly. Giving the exact information sought in the application leads to authenticity of the information. But just signing the application form and giving to agent leads to complete dependence on the agent. Sometimes, the agent does not know key information about the policy holder and may fill in unverified data, which causes discrepancy. This is the reason the police paper should be filled in personally. After completing the application, one should take a Xerox copy of that and read all the info given carefully. If there are any errors, the insurance company should be notified immediately in writing and have it corrected.