Key Reasons Why Term Claims Get Rejected

Non-Disclosure or Misrepresentation of Information

Imagine you skip telling the insurer about your medical history, maybe you downplay your smoking habit, or you forget to mention that you were diagnosed with high blood pressure. This may seem harmless at the time, but it’s one of the most common reasons term insurance claims are rejected.

Insurance underwriting relies heavily on the information you provide lifestyle choices like smoking, drinking, pre-existing conditions like diabetes, cardiac issues, and even occupation can influence risk assessment. If any of this is later found to be inaccurate or withheld, insurers have grounds to deny the claim.

Tip: Always be truthful and thorough while filling out your application. When in doubt, disclose more rather than less. This protects your family’s claim later on.

Policy Lapse Due to Missed Premiums

Here’s a scenario that’s more common than you think: A policyholder buys a term plan, feels secure, but then misses premium payments. If premiums aren’t paid on time and the policy lapses, it becomes inactive. Since term insurance only pays out when the policy is active, any claim made after a lapse can be rejected even if the event occurs just a few days later.

How to avoid it:

• Set up auto-debit for premiums
• Use reminders on your calendar
• Choose a payment schedule (monthly/annual) that suits your cash flow

Keeping the policy alive is one of the simplest ways to prevent unnecessary heartbreak for your family later.

Incorrect or Incomplete Personal & Nominee Details

Many people underestimate how crucial accurate personal information is especially details like age, income, profession and nominee information. Wrong age declarations or not having an updated nominee can create legal complications or even lead to claim rejection.

Tip: Nominee details matter even more at claim time. If your family circumstances change marriage, birth of a child, divorce make sure these changes reflect in your policy.

Delay in Filing the Claim

Even if the policy is active and information is accurate, there’s a window of time within which a term insurance claim must be filed. Not informing the insurer promptly about the death of a policyholder or waiting too long to submit documents can jeopardise the process.

Fast action = faster pay-out.

Once a policyholder passes away, it’s important for the nominee to initiate the claim process as soon as possible to avoid delays or complications.

Suicide & Exclusion Clauses

Most term insurance policies include an exclusion period usually the first one or two years of the policy during which claims due to suicide are not payable. That means if a policyholder dies by suicide within this window, the insurer may legally refuse the claim.

Additionally, all policies include specific exclusions, situations or causes of death not covered under the policy. It’s critical that policyholders and families understand these clauses. Sometimes, these exclusions revolve around dangerous activities, professional hazards, or certain medical conditions.

Tip: Always read the policy document carefully and ask your broker (like Jio Insurance Broking) if anything is unclear. They can explain clauses and help you choose riders that fill any protection gaps.

Non-Compliance With Policy Terms

Insurance companies expect you to stick to the rules laid out in your policy. For instance, if you change your occupation to something high-risk (like mining or deep-sea diving), but fail to inform the insurer, this could impact the claim later.

Keeping your insurer updated with major life changes health, occupation, address, contact details not only helps with smoother administration but can save potential rejections later.

How Jio Insurance Broking Makes The Claim Process Easy?

At Jio Insurance Broking, we understand that buying term insurance is not just a financial decision it’s an emotional one too. That’s why the platform helps you:

• Compare term plans from reputable insurers
• Customise add-on riders like critical illness or accidental cover
• Ensure accurate documentation & nominee details
• Get expert guidance from purchase through the claims process
• Enjoy a seamless online experience with clarity and simplicity

One of the key differentiators is support: Jio Insurance Broking provides clear claim assistance so your family isn’t left alone during challenging times. Timely help, smooth communication, and comprehensive guidance are what make all the difference when securing your family’s peace of mind.

Be Prepared. Not Surprised.

Term insurance is one of the most affordable ways to provide financial protection for those you love. But all the premium savings and coverage won’t matter if a claim gets rejected on avoidable grounds.

To recap, the primary reasons term insurance claims get rejected are:

• Non-disclosure or misrepresentation
• Policy lapse due to unpaid premiums
• Incorrect personal/nominee details
• Delayed claim filing
• Suicide or exclusion clause issues
• Non-compliance with policy conditions

By understanding these pitfalls and following best practices, you can drastically improve the chances that your loved ones receive the financial support you intended exactly when they need it most.

If you haven’t yet reviewed your term insurance policy or want expert help navigating your choices, Jio Insurance Broking is here to guide you at every step from purchase to pay-out. Secure your family’s future today, and ensure your term insurance claims are honoured without hassle.