Know Reasons Why Term Insurance claim Can Get Rejected

Even though most of the term insurance companies emphasize the transparent and effective claim settlement process, the rejection of claims bound to happen. In some of the cases, it can be the fault of the insurance company, whereas in most of the cases the claim the rejected due to the ignorance/negligence of the policyholder. Filing the claim does not guarantee that the claim will be settled and the nominee will receive the claim amount. In case of any discrepancy, the insurance company can reject the claim stating the reason for its rejection.

51 Partners Insurance Partners

10.5 Crore Registered Consumer

5.3 Crore Policies Sold

We are rated ++ rating

₹1 Crore Life cover starting from ₹478/month⁺

Lowest Price Guarantee ^˜

Male

Female

Name

Date of Birth

Mobile Number

Check Your Premium Now

Get Updates on WhatsApp

Further, in this article, we will elaborately discuss the most common reasons for the rejection of the term insurance claim.

Note: Before you know about the Reasons Why Term Insurance claim Can Get Rejected you should know about what is term insurance to better understand this article.

Term Plans

₹1
Crore

Life Cover

@ Starting from ₹ 13/day⁺

₹50
LAKH

Life Cover

@ Starting from ₹ 8/day⁺

₹75
LAKH

Life Cover

@ Starting from ₹ 12/day⁺

Incorrect Information in the Application Form

While filing the claim form, it is very important that the beneficiary of the policy should fill all the information correctly. Any misrepresentation of information can be disadvantageous for a term insurance claim. The nominee should fill the details like income, age, occupation, lifestyle (drinking &Smoking), qualification, information of previous policies, and claims if any, and other required information carefully. Moreover, the beneficiary should also cross verify the information before submitting it to the insurance company.

Non- Disclosure of Medical History

While purchasing a term insurance policy, it is mandatory that the insurance buyer must disclose their pre-existing medical conditions. Any non-disclosure of medical history can affect the policy claim. The medical history of the insurance buyer plays a vital role in determining the premium rate of the policy. It is also important to disclose the habit that affects the longevity of the policyholder like consumption of tobacco or alcohol. Thus, it is very important that the insured should declare these details to avail of the claim rejection.

Not Updating the Information of the Nominee

In case of demise of the life assured, the life coverage is offered to the beneficiary or nominee of the policy. Thus, it is very crucial that the insured should keep the insurer updated about the details of the beneficiary such as their contact information, address, etc. In case of failure to do so can cause trouble in the process of claim settlement and can also lead to the rejection of term insurance claim.

Moreover, the insurance holder should also choose the beneficiary of the policy wisely. A married individual can choose their spouse and children as their nominee, whereas an unmarried individual can make their parents or any other family member the nominee of the policy. In case the minor is the nominee then it is compulsory to list a guardian as well.

Secure Your Family Future Today

₹1 CRORE

Term Plan Starting @

Get an online discount of upto 15%^#

Compare 40+ plans from 15 Insurers

⁺Standard T&C Applied

Not Filing the Insurance Proposal Form Yourself

Many policy buyers often sign a proposal form and blank check and hand them over to the agents for filling the details. However, there is no guarantee that the agent will know all about the health history of the insurance buyer, that of the family member or finance. Thus, to avoid any type of discrepancy, the insured must fill the term insurance plan by themselves. This will also help the insured to have a better understanding of the term insurance policy and zero in on a plan that best suits their requirement.

Lapse of Policy Due to Non-Payment of Premiums

The insurance company settles claims only for active insurance policies. Thus, the insurance holder should always pay the premium of the policy on time. In case all the premium of the policy is fully paid, then the insurance company will easily process the claim in case of an eventuality. It is advised that the insured should check the premium payment status of the policy from time to time to ensure that the premiums of the policy are paid.

Note: It is suggested to calculate the term plan premium on the term insurance calculator online tool by Policybazaar before buying.

Non- Disclosure of Existing Insurance Policies

While purchasing a new term insurance plan the insured must disclose the details of all the existing term insurance policies (such as sum assured, name of the insurer, and policy number). Sometimes, the policy buyer avoids mentioning this information only because they find it burdensome to go through old documents to recover the specific details. Hiding such information can also become one of the main reasons for the rejection of the claim.

Wrapping it Up!

To avoid the situation of claim rejection, it is very important to check the claim settlement ratio of the insurance companies before zeroing in on a plan. So, by keeping in mind the above-mentioned points, one can not only safeguard the future of their loved ones but can also ensure that they get all the benefits of the policy as planned.

Note: Check all the best term insurance plan in India.

Note: You should also check the benefits of term life insurance if you are planning to purchase the term insurance plan.

Different types of Plans

Term Insurance

View Plans

Life Insurance

View Plans

List of Term Insurance Companies

View Plans

TROP

View Plans

Term Insurance For Senior Citizen

View Plans

Term Insurance For Spouse

View Plans

Term Insurance For Family

View Plans

Term Insurance For NRI

View Plans

List of Term Insurance Plan

View Plans

Life Insurance Corporation of India

View Plans

What is Term Insurance?

View Plans

Term Insurance Calculator

View Plans

1 Crore Term Insurance

View Plans

2 Crore Term Insurance

View Plans

Explore the popular searches and stay informed

˜The insurers/plans mentioned are arranged in order of highest to lowest Sum Assured(SA) offered by Policybazaar’s insurer partners offering term insurance plans on our platform, as per ‘first year premium of life insurers as at 31.03.2025 report’ published by IRDAI.

Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. For complete list of insurers in India refer to the IRDAI website www.irdai.gov.in

Rs. 400/month is starting price for a 1 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age, rounded off to nearest 10.

Rs. 400/month (Rs.13/day) is starting price for a 1 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 230 is starting price for a 50 lakhs term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age, rounded off to nearest 10.

+Rs. 8/day is starting price for a 50 lakhs term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age, rounded off to nearest 10.

+Rs. 12/day is starting price for a 75 lakhs term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age, rounded off to nearest 10.

+Rs. 497/month is starting price for a 1.5 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 487/month is starting price for a 2 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 626/month is starting price for a 3 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 905/month is starting price for a 5 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 1,267/month is starting price for a 7 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

*The full refund of premium is available on availing the one-time option of refund of premium. Total premium paid for policy (paid for add-ons) will be the special exit value, payable on availing the one-time option of refund of premium if you wish to completely exit the policy.

+Rs. 447/month is starting price for a 1 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs.679/month is starting price for a 2 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 910/month is starting price for a 3 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 1,374/month is starting price for a 5 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 1,924month is starting price for a 7 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

Women

+Rs. 400/month is Starting price for a 1 crore term life insurance for an 18 year-old Female, non-smoker, with no pre-existing diseases, cover upto 30 years of age, rounded off to nearest 10.

Rs. 461/month is the starting price for a 1 crore term life insurance for an 24 year-old female, non-smoker, with no pre-existing diseases, cover upto 54 years of age.

1,642/month is the starting price for a 1 crore term life insurance for an 44 year-old female, non-smoker, with no pre-existing diseases, cover upto 74 years of age.

Prices offered by the insurer are as per the approved insurance plans | #All savings and online discounts are provided by insurers as per IRDAI approved insurance plans | Standard Terms and Conditions Apply | **Tax Benefits are subject to changes in tax laws.| Policybazaar Insurance Brokers Private Limited

We will respond in the first instance within 30 minutes of the customers contacting us. 30-minute claim support service is for the purpose of giving reasonable assistance to the policyholder in pursuance of the claim. Settlement of claim (including cashless claim) is the responsibility of the insurer as per policy terms and conditions. The 30-minute claim support is subject to our operations not being impacted by a system failure or force majeure event or for reasons beyond our control. For further details, 24x7 Claims Support Helpline can be reached out at 1800-258-5881

For more details on risk factors, terms and conditions, please read the sales brochure carefully before concluding a sale

Policybazaar Insurance Brokers Private Limited | CIN: U74999HR2014PTC053454 | Registered Office - Plot No.119, Sector - 44, Gurgaon, Haryana – 122001 | Registration No. 742, Valid till 09/06/2027, License category- Composite Broker Visitors are hereby informed that their information submitted on the website may be shared with insurers. Product information is authentic and solely based on the information received from the insurers.

˜ Policybazaar Promise reflects the guarantee offered by insurers. Price assurance is based on certifications shared by insurers with us.