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7 mistakes that can cost your family term insurance payout; check them out
- Written by ZeeBiz WebTeam
Published: Zee Business| Updated: Zee Business
Term insurance is supposed to offer peace of mind — a safety net that takes care of your loved ones if something happens to you. But claims often get rejected due to avoidable errors that policyholders unknowingly make. From missing nominee updates to hiding health issues, these oversights can derail your family’s access to the very protection you planned for them. Here is a list of mistakes you make and how you can avoid them:
1/9
Withholding medical history
1/9Hiding illnesses like diabetes or heart disease during application? If linked to cause of death, the claim can be outright rejected.
2/9
Policy lapse? No coverage, no claim
2/9Missed your premium due date? Your policy could lapse — and your family won’t get a rupee. Set auto-pay now.
3/9
Nominee not updated
3/9Changed family dynamics? Update your nominee info regularly to avoid legal hurdles at claim time.
4/9
Gave wrong age or job info?
4/9Even an innocent error in your personal details can raise red flags for insurers. Be 100% accurate while filling forms.
5/9
Delay in informing insurer? Claim may be void
5/9Death must be reported to the insurer within a specific timeframe. Delayed intimation could nullify the claim.
6/9
Disclose all habits honestly
6/9Don’t lie about smoking or alcohol. Insurers investigate claims thoroughly — honesty is the best policy.
7/9
Appointing the right nominee
7/9Naming a minor? Assign an appointee. Haven’t updated post-marriage? Fix it now to ensure smooth payout.
8/9
Inform your family where policy papers are
8/9If your family doesn’t know the policy exists, they may miss the claim window. Keep them in the loop.
9/9
When in doubt, ask a licensed advisor
9/9Confused about declarations or rules? Don’t risk rejection, consult a professional before submitting your application.
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