Life insurance is considered as the best way of supporting our families financially in any unexpected circumstances. Sometimes, mistakes from your part create chances to get rejection in the insurance claim. It is also vital to choose that plan, which helps to benefit your family in the time of need. Therefore, one must know about the circumstances that can lead to the cancelation of the claim.
In the guide, we are here to let you know about these situations. The cases help to ensure that at the time of choosing the policy, you know what are you doing. You also have to search for one thing, and it is can you have more than one life insurance? The reason is to know whether you can apply for more to cover additional benefits. Well, there are fewer chances of having a double life policy. Let us talk about the situations that can put the claim in trouble.
- Suicide cases
There are certain rules set in suicide cases. In this one, the nominee will be given the entire amount of the policy. One must ensure to claim the insurance within one year of death by suicide. However, if the nominee is non-linked, then the amount paid must be around 80 percent to that person. If the insurer commits suicide before the date of the commencement, then there is nothing like settlement given to anyone.
If the insurer dies after breaking the law or commits the crime, no settlement will be given in such a case. Everything will be rejected, and it does not matter what the terms and conditions are.
- Drunk and drive case
When the policyholder found guilty of drunk and drive by the insurance policy, then no claim is given to the nominee. The file will be rejected, and the company holds the right to do it. Make sure that you don’t drink alcohol while driving.
- Death due to natural calamity
In such cases, where death is due to natural causes like floods, earthquakes, or something else, one will not get anything in return. The reason is that it is not covered in the basic plan. You can go for choosing the add-on plan to cover this one. There is a need to raise one question in mind, and it is can you have more than one life insurance. No one can have this but can select several add-ons in the exciting plan.
There are some cases where the nominee is the murderer. If the company founds out everything about it, then the settlement will be rejected. If you are not accused, then don’t worry as after dropping the charges, one can ask for the claim.
- Terrorist attack
No one will be given any settlement in the terrorist attacks. The reason is that these are not covered under the plan of term insurance. Therefore, they are settled based on the humanitarian ground where the nominee needs to make contact with the IRDA. The majority of organizations don’t cover this one as part of their plan.
These are the top cases where one can face rejection when applying for settlement. Always make sure to read the terms and conditions carefully before enrolling any plan offered by them.