What are the Reasons for Term Insurance Claim Rejection and Ways to Avoid it?

What is Claim Rejection?

Top 6 Reasons for Term Insurance Claim Rejection

Tips to Follow to Prevent Claim Rejection

FAQs about Term Insurance Claim Rejection

Do term insurance policies cover the “Act of God”? up-arrow

If the insured person dies due to an Act of God or natural calamities like storms, earthquakes, floods, etc., it will only be covered if specified in the term insurance plan.

What is a claim rejection ratio of term insurance? up-arrow

Claim rejection ratio is the percentage of rejected claims during the reporting period in relation to the total claims submitted. The claim rejection ratio of term insurance generally stands around 1.5%.

What are the types of term insurance plans? up-arrow

Mentioned below are the types of term insurance plans available:

  • Level Term Policy
  • Convertible Term
  • Decreasing Term
  • Adjustable Premium Term
  • Credit Term
  • Return of Premium Term
  • Renewable Term