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Avoid Term Insurance Claim Rejections

term life insurance plan allows you to secure your family’s financial future. Even if something happens to you, you can rest assured that your nominee will receive the promised payout. In certain situations, insurance companies may reject a term insurance claim. Avoid making the following mistakes to ensure your nominee does not have to deal with claim rejection.

1 Crore Term Insurance@ Rs.21/day***

To delay is to regret

You may not always be around to take care of your family. And that’s when a term plan ensures your family is well protected.

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    Return of Premium (ROP) Option^

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    17% Online Discount**

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    Same Day Claim Processing#

  • Claims guaranteed

    100% Claims guaranteed15

66 Mn.

Lives Insured@

Rs. 3 Tn.

Assets under management@

Rs. 630.8 Bn.

Total Premiums@

ROP

Return of Premium^

Same Day

Claim Processing#

17%

Online Discount**

100%

Claims guaranteed15

Get Rs. 1 Cr. Life Cover at just Rs.21/day***

17% Online Discount**

Save tax up to Rs.54,600~

Get Rs. 1 Crore Life Cover at Rs. 26/day***

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Make Sure Your Term Insurance Claims Are Never Rejected!

HDFC-Life-Article-Financial-Security-copy
June 16, 2025

Mistakes to avoid Claim Rejection

  • Incorrect Application Information

    While filling out your term insurance policy application, you must provide accurate information. Misrepresenting data could mean the cancellation of your policy at a later date and the rejection of all claims. Ensure you enter details such as your age, income, occupation, lifestyle habits, and previous policy details correctly. Your insurance company will provide a premium amount based on these details. If you provide wrong or inaccurate information, it amounts to fraud.

  • Not Providing Medical History Details

    When purchasing term insurance online or offline, you must provide information about your medical history. You must notify your insurance company if you have any pre-existing conditions or have had surgery. You also have to give details about your family history, such as if your parents have conditions like high blood pressure or diabetes. They will estimate your premium amount based on these details. Say you have an existing heart condition and fail to disclose it while purchasing your term plan. During the policy term, you might suffer a fatal heart attack. When your nominee files a claim, the insurance company will investigate. They will likely discover that you did not disclose your existing heart condition and reject the claim, leaving your family without the payout.

  • Having a Proxy Fill the Application

    You may provide an agent or advisor with a blank cheque and signed forms. Unfortunately, the individual you trust may not have all the details regarding your financial and medical history. Take responsibility for your application. When you fill out your form, you have the chance to double-check all the information and better understand the term insurance policy.

  • Forgetting to Update Nominee Information

    If anything happens to you during the policy term, your nominee receives the insurance payout. To ensure smooth and hassle-free payment, you must update your nominee details. When you’re young, you may want a parent as your nominee. If something happens to them, you must update your nominee. Additionally, you need to ensure that the nominee’s details, including address and contact information, are correct. If there is an error and the insurance company cannot contact the nominee, they might reject the claim.

  • Not Paying Premiums on Time

    Insurance companies will only entertain claim requests for an active term insurance policy. You may forget to pay a premium for your term plan. The insurer will give you a grace period during which you must pay the required amount. If you fail to do so, your policy will lapse, and you no longer enjoy the life coverage offered. If your nominee files a claim against a lapsed policy, it will automatically get rejected.

  • Non-Disclosure of Existing Plans

    When you purchase a term plan, you must let your insurer know if you hold any other term policies in your name. Insurance companies will take other plans into account during the financial underwriting process. Your insurer may cancel your plan or reject claim requests if you do not declare an existing policy.

If your nominee’s term insurance claim request gets rejected, it negates the purpose of having a policy. When you purchase a plan, you must ensure that you accurately provide all the necessary details. You must also pick sufficient coverage as your sum guaranteed amount. Ideally, you can choose 10 times your yearly salary as life insurance. If you have additional financial obligations, you can choose a higher amount. However, you must remember that an insurance company will likely not offer a plan worth more than 20 times your annual income. Make sure you do some research and find a term insurance policy that provides the coverage you require.

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Francis Rodrigues Francis Rodrigues

Francis Rodrigues has a decade long experience in the insurance sector, and as SVP, E-Commerce and Digital Marketing, HDFC Life, manages the online sales channel, as well as digital and performance marketing. He has had hands-on experience in setting up sales channels and functional teams from scratch over a career spanning 2 decades.

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HDFC LIFE IS A TRUSTED LIFE INSURANCE PARTNER

We at HDFC Life are committed to offer innovative products and services that enable individuals live a ‘Life of Pride’. For over two decades we have been providing life insurance plans - protection, pension, savings, investment, annuity and health.

*Online Premium for Life Option, Male Life Assured, Non-Smoker, 20 years of age, Policy term of 25 years, Regular pay, Annual frequency, exclusive of taxes and levies as applicable. (Monthly Premium of Rs1047/30=34.9)

***Online Premium for Life Option for HDFC Life Click 2 Protect Super (UIN: 101N145V07), Male Life Assured, Non-Smoker, 20 years of age, Policy term of 25 years, Regular pay, Annual frequency, exclusive of taxes and levies as applicable. (Monthly Premium of 622/30=20.7).

**7% online discount available on 1st year premium only

^ Available under Life & Life Plus plan options

#Provided we have received all the relevant and required documents and no further investigation is required. Claim settlement process would be completed within stipulated timelines once the claim request is approved

@As per integrated annual report FY23-24, available on www.hdfclife.com. As of May 2024

15. HDFC Life Click 2 Protect Ultimate(UIN: 101N179V01) A Non-Linked, Non-Participating, Individual, Pure Risk Premium/Savings Life Insurance Plan. The policy must be in force on the date of death, with all premiums fully paid, except for the exclusion clauses mentioned in Part F of the policy document.

~Tax benefits of ₹ 54,600 (₹ 46,800 u/s 80C & ₹ 7,800 u/s 80D) is calculated at highest tax slab rate of 30% on life insurance premium u/s 80C of ₹ 1,50,000 and health premium (Critical illness rider) u/s 80D of ₹ 25,000. Tax benefits are subject to conditions under section 80C, 80D, 10(10D) as per Income Tax Act, 1961. Please consult your tax advisor for more information.

ARN - ED/08/22/28533