Hyderabad: A life insurance policy offers protection against the risk of death from a mishap, a serious health condition or a life-threatening ailment and old age. It provides coverage or protection to your life for a specified term or a defined period, as long as premiums are paid timely.
When the insured person passes away, a claim is paid to the beneficiary depending on the terms of the life insurance policy. It is very important to buy an insurance protection cover that is suited to your needs to ensure you are protecting your loved ones financially after your demise.
However, taking out insurance alone is not enough. Care should be taken while taking the policy without any complications while claiming it. An insurance policy is a reliable agreement between the insurance company and the policyholder. Therefore, the policyholder must be transparent in all matters. Then only the long-term reassurance continues. Not only is the policy becomes void when fraudulent information is provided there is also a risk of denial of claim payment.
Need to understand
Depending on the type of policy, in case of death, serious illness and accidents it is possible to claim the policy in many cases. What is the type of policy we take? When will the compensation be paid? Must first understand the elements. To claim the insurance money, one has to proceed properly your bank account details should be communicated to the insurance company from time to time. All premiums must be paid on time and there should not be any dispute over the information given. Only then the policy claim be paid.
Maintain transparency while taking out an insurance policy
The main purpose behind taking out a policy is to get compensation when we are in dire need of money. Therefore, make sure that every piece of information provided to the insurance company is accurate and clear when taking out the policy. Only then, payments once the policy expires, or in case of death of the policyholder can be easily compensated. The policy was given based on the information provided by the policyholder. The insurance company gives the policy taking the income of an individual, his age and other factors into account. When the policyholder gives false details and in case of a claim, the insurance company may refuse to pay compensation if the details are found to be incorrect.
Health history
Insurance companies closely monitor the health of the policyholder when issuing an insurance policy. Therefore, the policyholder should not hide his ailments while taking the policy and to top it, the insurance will not be issued to certain diseases. Even if the policy is taken by hiding those details, the insurance company has the right to cancel the policy when it is known later. Especially, those who are addicted to smoking must inform about that. This can lead to a slightly higher premium. But, there will be no difficulties in the future. Covid is not covered by insurance companies for up to 90 days. However, some insurance companies offer a slight discount on the insurance premium for those who receive a two-dose vaccine.
If you already have a policy
For instance, suppose the annual salary of a person is Rs 20 lakhs. An insurance company insures up to 10 times the annual salary, which means that he is entitled to an insurance cover of Rs 2 crore. After taking out this policy, suppose the company's investigation shows that the income is only Rs 10 lakhs. The insurance company may not agree to compensate for this policy. Insurance policy is based on many factors. If you have already taken any policy and you must provide those details.
Update KYC details from time to time
If the phone number, e-mail and home address change after taking the policy, the details should be communicated to the insurance company. Without knowing these details insurance companies is likely to reject the claims. Hence, see that such a situation does not arise. Even if the policy is taken online one should keep hard copies with them and receipts of the premium paid should be attached to them.
Nominee details
The policy must specify the nominee to indicate who will claim the policy in unforeseen circumstances. Many are still negligent in entering the nominee details. Make sure the nominee's name is correct in your policy. The name on the Aadhaar and PAN card should match the details of the date of birth. When the bank account details change, the details should also be communicated to the insurance company. At the time of claim, insurance companies will ask the nominee some questions and details of identity verification. These precautions are taken to prevent compensation from going into the hands of fraudulent individuals. Relevant documents, death certificates, KYC documents and bank details should be submitted to the insurance company while claiming the insurance.
Also read: These insurance mistakes can lead to rejection of your claim
