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Life Insurance is important for safeguarding one's family and loved ones against the possible uncertainties of life. The apt life Insurance ensures the financial stability of your family during turbulent times.

Before purchasing a life insurance policy the prospective client needs to read the offer document very carefully. Once you have accepted the offer and paid a premium for the life insurance policy there's no turning back. Any mistake made by the policyholder during the purchase or claim filing process can result in the claim being rejected. In the case of not fulfilling any of the agreed-upon clauses, there is a high chance of claim rejection.

Common Reason for Claim Rejection

Some of the common reason for claim rejections are as follows:

1. Incorrect/Misleading Information in Insurance Application

If the policyholder provides incorrect/misleading information in the insurance application document then in most cases the claim will get rejected. It does not matter if the policyholder provides misleading/incorrect information intentionally or not. Providing misleading/incorrect information at the time of purchasing the policy can result in claim rejection. It is the duty of the policyholder to cross-check the information in the application.

2. Not paying Policy on Time

The policyholder must pay the premium promptly. If the policyholder misses to pay the premium on time or forgets to pay the premium installment altogether it can have a serious impact on the claim settlement process. Non-payment of premium and multiple late premium payments can make the claim settlement process unnecessarily complicated.

3. Hiding Medical History from the Insurance Provider

Providing accurate medical history is a mandatory requirement at the time of purchasing life insurance. The premium for life insurance is calculated based on past medical history. It is important that the policyholder provide an accurate medical history to the insurance provider to avoid the hassle of claim rejection in the future. Lifestyle diseases like smoking and drinking if any should be also disclosed to the life insurance provider at the time of purchasing the policy. These lifestyle diseases can significantly affect the life expectancy of a person hence can contribute to a higher premium.

4. Not Updating Nominee Details

It is important the policyholder provides details of the nominee in the policy offer document, there is a specific section dedicated for the same. The Nominee is the person who will receive the claim benefits after the death of the life insurance holder. It is important from the part of the policyholder to update the mandated information of the Nominee from time to time (if required) to ensure a smooth claim settlement process.

5. Not Disclosing About Additional Policy Details

During the document stage of the insurance purchase process, the prospective policyholder is requested to disclose information about all the insurances owned by the person. Most people do not take this section of the application seriously. In fact, most policyholders do not disclose all the policies that they own as it takes a lot of effort and time. But, this negligence on the part of the policyholder can be the grounds for claim rejection by the insurer.

How to Prevent Possible Claim Rejections

Some of the best ways to avoid life insurance claim rejection are as follows:

1. Provide Accurate Information at the Time of Filling Application

The most important way to avoid life insurance claim rejection is to ensure that the policyholder furnishes accurate information at the time of filling the application. By not revealing information, especially vital information that can impact the premium of the policy will prove detrimental at the time of claim submission. Honesty is the best policy, this also ensures a trouble-free claim submission process and a higher claim success rate.

2. Pay Policy Premium Promptly

Always make sure to pay the premium in a timely manner. Policyholders who buy life insurance buy the same to make the life of their loved ones easy even when the policyholder is no more in this world. Hence it is always advised to make prompt payment to make the claim settlement process easy for your loved ones.

3. Update the Nominee Information

One of the biggest reasons for claim rejections in the UAE is the non-updating of nominee information. If you are single you can keep one of your parents as the nominee and if you are married, your wife or your children can be your nominee. Please update the nominee information to make the claim process for your loved ones easy.

4. Timely Filing the Life Insurance Claim

Timely claim filing is a very important aspect that determines the success or rejection of the claim. Most insurance companies have a fixed time frame within which the claim needs to be filed by the nominee of the policyholder. This fixed time varies from one insurance provider to the other.

5. Taking a Medical Examination

Some Medical insurance providers offer medical examinations to prospective clients before signing their offer letter. This gives the insurance provider a thorough understanding of the health of the prospective policyholder. It is always advised to take a medical checkup before applying for a life insurance policy as it can offer all the required information to fill the life insurance policy application. Taking a medical examination can ensure a higher claim success rate.

Conclusion

It is important that the policyholder reads and understands the policy contract before signing the same. The objective of taking life insurance is to ensure that your loved ones are safe financially. Hence it is your duty to make sure you do everything in your power to ensure a smooth claim settlement process.