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Make sure that your term insurance claims are never rejected!

Make sure that your term insurance claims are never rejected!

make sure that your term insurance claims are never rejected

Life insurance policies are an essential instrument to invest in, to protect your family’s well being in your absence. While there are several different kinds of life insurance plans available on the market, term plans, in particular, are becoming increasingly popular, since they are simple and offer easy-to-understand terms.

Term insurance is considered to be the cheapest and purest form of life insurance. Term plans not only offer benefits to dependents upon the policyholder’s death, but also ensure that benefits are available to policyholders while opting for the policy. These can include tax benefits under the Income Tax Act, 1961.

However, claims submitted on term plans can be rejected by insurers on several grounds which can be easily avoided by policyholders. There are several mistakes that policyholders make during the process of opting for the policy which leads to the rejection of claims made by their dependents. Fortunately, it is possible to avoid these mistakes by being vigilant and looking out for these common mistakes to avoid. Read on to learn what these common mistakes are, and how they can be avoided.

1. All requisite information must be revealed:

“Concealment of information” is something that can lead insurers to reject claims made for life insurance policies. This includes all information pertaining to the health of the policyholder, including hospitalization. When claims are made, the insurer will check your documents to verify whether you have any habits that could have resulted in this disease to occur. If the insurer finds that the disease was caused by the policyholder’s habits, such as smoking or drinking, which was not revealed to the insurer, they are at liberty to reject claims made for insurance. Premiums paid towards the insurance policy are also dependent on the facts provided to insurers, so it is necessary to be honest while furnishing all the information to the insurer.

2. Pay premiums in a timely manner:

Life insurance policies, and especially term plans, can lapse if premiums are not paid in a timely manner. It is necessary to pay premiums within the time period indicated by the insurer, in order to ensure that the benefits of the policy are still accessible and that claims cannot be rejected by the insurer. Opt for the iSelect Star plan, through Canara HSBC Oriental Bank of Commerce, to avail flexibility in terms of frequency of premium payments which you can customize according to your personal requirements.

3. Nominee Information has to be up-to-date:

The information provided to the insurer has to be completely up-to-date with the latest information, and this includes details of the nominees who can raise claims. If the nominee information available with the insurer does not match the actual dependents, they will not be able to get payouts on maturity of the policy. The insurer will reject the claims if there is any mismatch in the information available with them and those being cited by the dependent.

4. Avoid delays in making insurance claims:

While filing insurance claims may be the last thing on your mind when a loved one, especially a parent or spouse, expires, it is essential to file term plan insurance claims at the earliest. The earlier it is made, the easier the claim processing will be.

5. Fill out the insurance application form yourself:

It is always best to fill out the insurance application form yourself. Even while insurance agents will offer to fill in your details themselves, it is best to do this yourself as it lets you ensure that the correct information has been furnished to the insurer. A major reason insurance claims are rejected is because the information available with the insurer does not correspond with the correct information concerning the policyholder’s health or even details about the dependent nominees. Today, it is much easier to fill in the insurance details yourself owing to online applications which offer increased convenience for policyholders.

6. Thoroughly read the policy’s fine print:

An insurance document comes filed with fine print, which is additional information that includes the terms and conditions of your insurance policy. This fine print can often include the information you need to keep in check in order to ensure that claims are not rejected by the insurer. The fine print also includes details on cases where the claim may be rejected, so make sure to understand the terms thoroughly before signing up for the concerned term plan.

An insurance policy can prove very useful during distressing times, and it is essential that the claims made to the insurer are not rejected especially since this can prolong the time taken by the insurer to process the claim. Opt for the iSelect Star plan, available on Canara HSBC Oriental Bank of Commerce, to avail benefits in a transparent manner. Not only can you apply for this policy online in a seamless and transparent manner, but you can also avail benefits for your spouse and dependents at discounted rates.

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Frequently Asked Questions (FAQs) for Term Insurance Plans

A person can only purchase a term insurance plan till the age of 65 years, and they can choose the risk coverage for up to 99 years of age. One can easily buy the best online term plan between the age of 18 to 65 years.

This being a term insurance plan doesn't offer any payout after maturity or expiration date

Each insurance company has its own term insurance premium calculator. If you want to check out the premium quote, go for the iSelect Star term plan calculator. It gives a premium amount based on your age, gender, habits, education, and annual income.

You can purchase an iSelect Star term plan anytime between 18 to 65 years of age. This is a term plan with return of premium option – that means all the premiums paid throughout the tenure will be paid back to you if you outlive the policy.

It depends on your needs. For example, if you want to cover a child's education or wedding expenses, you have to include them in your coverage. Your premium will be calculated accordingly when you buy the best term plan in India.

If your key purpose is to give your Family financial protection, go for the best term insurance plan. And if you want some savings, in the end, go for a traditional life insurance plan. iSelect Star is a term plan with return of premium option. All the term insurance premium will be paid back to you, if you outlive the policy term.

Go for at least 12 times cover than your annual income. Or you can go as far as 20 times coverage as per your needs.

The right time is when you don't have anything to keep your Family safe from financial storms, and they rely on you for financial needs.

If you are unable to make the payment or suffering from a terminal illness, the best term insurance plan pays a part of the sum insured to treat your disease.

Term life insurance plan riders are attachment or endorsements made, while taking the term insurance policy, as a supplementary coverage to policyholders. Apart from the core death benefit, term insurance plan riders offer below-given additional benefits:

  • Accidental Death Rider When a person suffers from a terminal illness, his/her family ends up spending a significant amount in treatment and medical expenses. Accelerated death rider pays a part of the sum insured in advance to cover such costs and save the family from running out of cash.
  • Accidental Disability Rider If the policyholder can't pay the premium because of an accident or permanent disability, a sudden disability this pays the premium on behalf of the policyholder till completion of policy term or for a defined duration.
  • Critical Illness Rider If the insured person gets a heart attack, cancer, or any other critical illness, this rider pays a lump sum on valid diagnosis.
  • Premium Waiver Rider If the policyholder is unable to make payments due to income loss or disability, a premium waiver rider waives off all future premium payments. And the term insurance policy remains active until the expiration date.
  • Income Rider: This rider in a term insurance plan ensures that your family receives regular income + sum insured in case of unfortunate demise of life insured.

Anyone can go for life insurance as it offers some savings after the maturity date, but it doesn't cover the protection of your family . The best term insurance plan is solely designed for taking care of loved ones if something happens to you. Term insurance plans act as a shield between your family and sudden financial fall. They make sure that your family lives a healthy life even after you. With a little amount paid per year, you can be worry-free from the family's financial conditions.

Questions that you need to ask while Buying the Best Term Insurance Plan?

  1. 1. Are you buying a term plan with return of premium?
  2. 2. Amount of premium you have to pay based on your age, habits, education, and monthly income
  3. 3. The total number of benefits covered in the term insurance plan. Do they include benefits that you care about the most?
  4. 4. How to save money on tax if you pay for the term life insurance plan?
  5. 5. Do they offer regular income options?
  6. 6. Can you change the coverage and premium in the future?
  7. 7. Does the claim consider valid if death occurs outside India?
  8. 8. Which kind of death is not covered by a term insurance plan?
  9. 9. Can NRIs take a term insurance plan? If yes, what are the conditions?
  10. 10. Does the term insurance plan have a cash value if you decide to cancel the term insurance policy?
  11. 11. Under what circumstances can a term insurance plan be cancelled?
  12. 12. Can I pay the premiums online or make electronic payments?
  13. 13. What will happen to the term life insurance plan if the life assured starts smoking after purchasing the policy?
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