Alternatives to the Nightmare of Claim Rejection
Picture in your head the scariest movie you have seen – did the thought bring you goosebumps? The only thing that could be scarier is being part of the movie’s scene, right?
NO! Now imagine – your loved ones filing an insurance claim... only for it to get rejected! That brought absolute terror, didn’t it? However, there are three alternatives mentioned below that can help you escape that nightmare.
Facing the Rejection
Nobody likes to be rejected, especially if the rejection can cause you serious burdens. Nobody wants to see their family financially burdened in an otherwise stressful time, which is why one even thinks to buy term insurance in the first place, because it is the ideal option to set up a financial safety net for the loved ones.
When you go out in the market to buy term insurance, you think about a variety of factors such as the coverage amount, the features offered, the premium charged, and much more but the first and the most important thought that strikes the mind is claim settlement. All you expect from the insurance provider is a hassle-free claim settlement process. More than often, you also must have come across people suggesting you opt for an insurance provider with a high claim settlement ratio.
Sometimes, one comes across scenarios that can leave space for the insurance claims to get rejected. It can be an incorrect declaration of information, ignorance, lack of understanding when it comes to the terms and conditions of the policy, among a few others.
But does this mean you are stuck in the darkroom and there is no escape? No! You have alternative options if the insurance provider rejects your claim. Before skipping to the alternative solutions, it is good to know a different kind of claims made, they are:
- Death Claims: These are claims made by the nominees in the event of the demise of the insured during the term of the policy.
- Rider Claims: Term policies offer additional riders that enhance the scope of the coverage offered by your base policy. These claims are filed for any such rider taken up by the policyholder.
Below are alternative solutions if your claim gets rejected:
Approach Your Insurance Provider
Whenever your insurance claim is rejected by your provider, you can contact them and understand the reason for rejecting the claim in detail. You should research well in advance whether the claim request you make is covered in your policy or not. If you feel your claim was rejected unfairly, you can file a formal complaint to the insurance company by stating all the facts clearly in writing. It is important to provide maximum information so that your problem is resolved at the soonest.
Approach Consumer Protection
When the resolution offered by the insurance provider is not satisfactory, the complaints can be filed with the consumer protection forum. While resorting to such an option, it is important to have all the documents of your communication with your insurance provider ready along with all the necessary supporting documents.
The Bottom Line
To further conclude, one should not be devastated by the thought of the life insurance claim being rejected. It is just a hurdle and not the end. There are many alternative solutions that you can resort to in order to escape this nightmare. You should also keep your family in the loop when it comes to the details of your policy. Also, make sure to keep track of any important changes in the insurance space so that the hassle of facing a claim rejection can be avoided.
Always remember while you are in the search to buy term insurance online or offline, it is important to compare across the available providers in order to avoid claim rejection and other hassles.