Reasoning for unpaid claims!
Life insurance plays a vital role in our life as it provides financial security with your loved ones and gives you the ultimate peace of mind. But having a life insurance in place is not the only responsibility you have it is also important that you inform your loved ones about it so that they don’t have to suffer looking out for the details and documents to receive the payment at the event of your death.
Sometimes, few claims remain unsettled or the insurance companies deny payment. There are two main reasons behind this
- Fraud or disclosure of certain facts; this can be either in the initial application or later, then they will investigate the situation and if they find out any fraud they can refuse to pay. E.g., if you have said you don’t smoke, when actually, you pack away 40 fags a day (or even just vape socially once a month!) – if you didn’t mention that you regularly go skydiving, live in Norway, or if you have said you are 21 but instead you’re 51.
- Policy exclusion: the most common policy exclusion to be cited on a life cover is due to suicide. Mostly all insurers have an exclusion for suicide within their policy-meaning most of them do not pay out a life cover claim if the insured commits suicide within 12 months of the policy start date. There might be some other exclusion as well i.e., death due to some disease (cancer) or if in case you have a level term policy and you live past your term. So it is very important to read and understand all the terms and conditions of the policy you choose.
Life insurance is an agreement between the policyholder and the insurance company. Apart from the above two reasons, if the insured failed to maintain payments on the premiums for his/her life insurance policy, the provider could deny a claim and refuse to pay the death benefit.
We would recommend you to talk to one of our advisers for life insurance quotes.
Any quote that your adviser provides you with will take into account your circumstances, your medical history, as well as your budget!
Call 011-3733-4610 – Monday to Thursday from 11.00 to 19.00 and on Friday between 11.00 and 16.00